How will inheritance tax changes affect your farming business?

Anna Stubbs • February 25, 2025

If you’re involved in UK farming, the recent changes to inheritance tax (IHT) won’t have escaped your notice. There have been protests from the farming community and big questions about how these IHT amendments will affect the industry.



But what are these IHT changes? And is your farming business likely to be affected?

What are the main changes to IHT for farming businesses?

The Chancellor, Rachel Reeves, announced reforms to agricultural property relief (APR) and business property relief (BPR) from inheritance tax in the Autumn Budget 2024.

Currently, your farming business can make use of APR and BPR at a rate of 100% or 50%, with no cap on the total amount of relief for businesses that meet the eligibility criteria.

The big change is that inheritance tax relief for business and for agricultural assets will be capped at £1m from April 2026. There will be a new reduced rate of 20% charged above that £1m threshold, instead of the usual inheritance tax rate of 40%.

The tax will be payable in instalments over 10 years, interest free, with the government aiming to supply a technical consultation by early 2025 and the reforms coming in from April 2026.

Who will actually be affected by the new £1m threshold?

If you’re wondering how you’re likely to be affected by the new £1m threshold, and the impact it will have on your succession planning, HMRC has provided a helpful table.


Talk to us about preparing for these IHT changes

If your farming business falls below the £1m threshold, you’ll be able to continue claiming the APR and BPR reliefs as usual. If the value of your business is over the threshold then now’s the time to assess the impact and to take appropriate tax-planning measures.

Come and talk to the team and see what steps you can take to minimise the impact.

The Man on the Moon Principle

By Anna Stubbs • October 22, 2025
In 1961, President John F Kennedy famously announced his goal of landing a man on the moon and returning him safely to Earth before the decade was out. As we know, in July 1969, Neil Armstrong and Buzz Aldrin became the first people to walk on the moon, and were brought back to Earth safely, achieving JFK’s goal.  At a time when most people hadn’t even been on an aeroplane, landing on the moon would’ve felt unachievable and overwhelming. However, such a massive goal united people with a purpose; the story goes that even a cleaner mopping the floor at the space station said his job was to help put a man on the moon. So, how did they make the goal achievable? They broke it down into milestones, with each one taking them closer and closer to achieving their ultimate goal. The first milestone was to achieve lift off. So, they set about resolving this challenge. The next milestone was to reach orbit, so they had a team working on this milestone. Then, they had to reach the moon’s atmosphere, land safely on the moon, take off from the moon, enter Earth’s atmosphere and land safely back down to Earth. You can see how breaking the goal down into milestones gave everyone a more achievable objective to focus on which was less overwhelming. Those milestones were then broken down into the actions which needed to be completed. Each action was essentially a small step towards reaching the ultimate goal.

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By Anna Stubbs • October 22, 2025
For your business to make money, you need to generate revenue. You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be. But what actually drives these revenue levels? And how do you get in control of these drivers?