UK raises inheritance tax threshold for farms from £1m to £2.5m after protests

The Guardian
The Guardian 2M UK
UK raises farmland inheritance tax threshold to £2.5m after protests to protect family farms.
UK raises inheritance tax threshold for farms from £1m to £2.5m after protests
Why it matters
The UK government's initial plan to tax farmland inherited above £1m at a 20% rate triggered widespread protests and concerns about family farms being lost due to tax burdens. After sustained pressure from rural MPs and public backlash, ministers raised the taxable threshold to £2.5m from April, meaning fewer estates will face inheritance tax. This policy shift is expected to reduce the number of affected farms from 375 to 185. While retaining the tax, it reflects a compromise to protect smaller farms and address rural economic concerns.

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