Government waters down farm inheritance tax plan

Government proposals to tax inherited farmland have been watered down, with the planned threshold increasing from £1m to £2.5m.

The climbdown follows months of protests by farmers and concern from some Labour backbenchers.

At last year’s Budget, ministers said they would start imposing a 20% tax on inherited agricultural assets worth more than £1m from April 2026.

Environment Secretary Emma Reynolds said: “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.”

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