Farming organisations have expressed alarm after the chancellor Rachel Reeves said she would reform Agricultural Property Relief and Business Property Relief.
As part of the autumn budget, the chancellor of the exchequer said that from April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax, but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.
The Country Land & Business Association said the reform would “harm 70,000 farms across the UK. This is not protecting the family farm as the Chancellor promised, but puts the rural economy, our food security, and environmental recovery at risk.”
Other measures announced as part of the budget are tax rises of £40 bn. National insurance contributions paid by employers will increase to 15% from April 2025, which Reeves said would raise £25bn a year.
The chancellor also announced an increase in capital gains tax and the introduction of VAT on private school fees from 2025. Minimum wages will also rise in April to £12.21.
Announcing the plans, Reeves said the choices made are the right ones for the country. “They will restore stability, protect working people, fix the NHS and rebuild Britain,” she said.