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MNN UK · December 23, 2025 · 1 min read

Inheritance tax threshold for farms raised to £2.5m after backlash

What happened: Ministers have increased the inheritance tax threshold for farmland from £1 million to £2.5 million following protests and warnings about risks to family farms. The change will take effect from April.

Why it matters:

  • Reduces the financial burden on family farms passing to the next generation.
  • Addresses concerns from rural communities and MPs about farm sustainability.

MNN Take: The government responded to pressure by raising the tax-free limit to better protect farms from inheritance tax, aiming to support rural livelihoods and agricultural continuity.

Sources: Guardian UK