News
Important Changes to Inheritance Tax for Farmers & Business Owners
15 Oct 2025
Big changes are on the way for how farms and businesses are treated for Inheritance Tax (IHT). If you own land or a business, it’s worth taking a moment to see how this could affect you and your family’s future plans.
What’s Changing?
At the moment, many farming and business assets can qualify for up to 100% relief from IHT.
From April 2026, that full relief is to be replaced with a new £1 million Agricultural and Business IHT Allowance.
Here’s what that means in practice:
- The first £1 million of qualifying farming or business assets will be free from IHT.
- Anything above £1 million will be taxed at 20%.
This change could make a big difference for families with farms, land, or businesses that have grown in value over the years.
What This Means for You
If you’re a farmer, own a family business, or are planning to hand assets down to the next generation, these changes are worth looking at carefully. Even modest increases in land or business values could tip an estate above the new £1 million allowance.
Change like this can feel unsettling, especially when it touches on family wealth and the future of your business. The good news is that there’s still time to prepare. Reviewing your estate and ownership structure early can make a meaningful difference and may help reduce your exposure before the new rules take effect.
How We Can Help
We understand the care and commitment that go into building a business or maintaining a family farm.
Our specialist tax and succession team can help you:
- Understand how the changes apply to your situation
- Explore planning options to reduce future IHT
- Make sure your affairs are ready for April 2026 and beyond
If you’d like to talk about how the upcoming changes might affect you, get in touch to arrange a call or meeting.
