UK Government Steps Back: Inheritance Tax Relief for Farmers Expanded

The UK government announced a revision to its inheritance tax plans for farmers, raising the relief threshold from £1 million to £2.5 million, easing the burden on agricultural business owners. This decision follows months of protests and reflects the government's intention to protect smaller family farms.

The UK government has announced a significant revision to its inheritance tax policy affecting farmers. Following months of protests, the relief threshold has been increased from £1 million to £2.5 million in a bid to reduce tax burdens on agricultural business owners.

In a statement, Environment Secretary Emma Reynolds emphasized the government's commitment to supporting ordinary family farms while ensuring larger estates contribute more. Reynolds highlighted that the changes are a response to the feedback from farmers across the nation.

This decision is part of a series of policy reversals by Prime Minister Keir Starmer's administration, aimed at maintaining support for crucial rural communities amidst financial constraints. The revised rules offer 100% tax relief up to £2.5 million, with plans to help 85% of estates avoid additional costs.

(With inputs from agencies.)