Farming Minister, Dame Angela Eagle, has said that there will be no U-turn on the government’s plans for Inheritance Tax (IHT) in the upcoming Autumn Budget.
The Department for Environment Food and Rural Affairs, known as DEFRA, made representations to the Treasury regarding IHT changes, but the new rules appear to be firm. Speaking on a BBC Radio broadcast, Angela Eagle stated: “Despite some of the speculation in the press, there is no likelihood that will happen. The announcements have been made, and the situation will be as it was announced. But remember that three quarters of estates will continue to pay no Inheritance Tax at all, while the remaining quarter will pay half of the Inheritance Tax that most people pay. I’m afraid there aren’t going to be any changes with respect to the announcements that were made previously to Inheritance Tax in this instance.”
Changes to APR and BPR
As a reminder, from April 2026, a new £1 million allowance for 100% business and agricultural property relief will be introduced meaning farms and businesses valued above £1 million will be faced with IHT charges for the first time. By 2030, it is estimated that 10% of estates will be eligible for IHT.
Families can continue to transfer up to £1 million in agricultural and business assets tax-free. However, qualifying assets above this will now pay inheritance tax for the first time since they will only attract relief at the 50% rate
Despite this, the government anticipates that the change in April 2026 will impact only 500 of the wealthiest farms each year, a figure that has been disputed by rural associations.
For more information on APR and BPR and how you could be affected, read our article explaining the changes to APR during last year’s Autumn Budget here.
What can I do to reduce my Inheritance Tax liability?
If you are concerned about the upcoming changes to Inheritance Tax, it is important to seek expert advice. At PKF Smith Cooper, our specialist private client team can provide guidance and assist in planning for your future. Get in touch with us to see how we can help you.
