In the Autumn budget in 2025, Rachel Reeves announced far-reaching changes to the inheritance tax regime. However, in December 2025, new pronouncements meant that these anticipated changes to farmer’s inheritance will be different to what was originally announced.
The proposed initial changes included amendments to the tax laws that would have the potential to impact farmers to an extent previously unseen from inheritance tax changes put forward by the government.
Originally, any estates in the ownership of farmers worth one million pounds and above, were set to be affected by the new inheritance tax regime. However, this value has now been changed to two and a half million pounds, meaning that fewer farms will be liable for the tax.
As a result of these new changes, it has been calculated that the number of farms that will be expected to pay inheritance tax will be reduced to 185 from the original estimate 375. Another impact of the new updates is that spouses will be able to inherit the estates in the event of a death and will pay no tax on those valued under five million pounds. Specialist solicitors in Porthmadog can continue to advise their clients with farms to carefully estate plan to ensure the valuations of their property is current and correct.
Look to us here at Bennett Smith Solicitors for up-to-date advice on estate planning and inheritance tax; contact us today to book a meeting with one of our legal experts.
