You can’t have missed the news that UK farmers face significant changes to inheritance tax (IHT). It’s a good time to think about the future, especially if you own a farming business. This article updates you about important changes in this area…

100% relief remains on the first £2.5 million of combined agricultural and business property per person, but assets above this threshold will receive only 50% relief. This effectively results in an IHT rate of 20%, and affects family farms with high asset values but low liquidity.

To manage succession planning and avoid the need to sell land to pay tax liabilities, we encourage farming families to:

Farming Connect 

Eligible farming businesses can apply for funding to help towards the cost of succession reviews and legal drafting, via the government’s Farming Connect scheme.

We are on the panel for Farming Connect in relation to this scheme, and are pleased to announce government funding has now been extended for a further three years.

For further information about potential funding, please contact us or visit Farming Connect.

Congratulations to Rachel!

One of our solicitors, Rachel Williams, has recently been awarded Fellowship of the Agricultural Law Association (ALA). The ALA is the UK’s largest professional body for lawyers and other specialists working in agricultural and rural law.

In order to achieve this prestigious title, Rachel had to undergo additional training and pass a rigorous exam. Please read more about Rachel – as one of our dedicated team, you might be dealing with her to solve your agricultural law question.

Related reading

With the government’s inheritance tax changes due in April 2026, succession planning for family farms has recently become a hot topic. You might therefore like to read our related articles on the subject:

What next?

For more information, please see our page on Agriculture & The Environment or call us on 01938 552545. We’ll be happy to help.