Until now farm land has not been subject to inheritance tax but the chancellor wants to change that. From April 2026, any land worth more than £1m will be taxed upon the death of its owner at a rate of 20%, half the usual rate of 40%.
The news has caused consternation among farmers, but the farming minister insists that their worry is misplaced.
“I urge people to look calmly at the detail and I think they will find that the vast majority will be fine,” he said.
“The figures from the Treasury are very clear: under 500 farms a year are likely to be affected and I would say to people take advice because every person’s situation is different and there will be many, many people who will find they are not actually going to be caught by this.”
The minister says couples and farms with property should be able to claim further reductions in their bill, and if land is passed on more than seven years before a person dies there will be nothing to pay.
“People should look at the actual facts rather than the slightly extraordinary projections which are being made,” he said, referring to claims from the NFU and Country Land and Business Association that 70,000 people would be affected.
Source:
www.bbc.com
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