The advice and accountancy firm Old Mill stated that farmers were justifiably “up in arms” over changes introduced by Chancellor Rachel Reeves, which eliminate key inheritance tax (IHT) reliefs for agricultural and business assets.
Old Mill clarified that starting April 5, 2026, agricultural and business assets will receive 100% IHT relief only up to a cap of £1 million per person. This is in addition to the nil-rate band, which provides tax-free allowances of up to £325,000 per person, or up to £500,000 for those qualifying for the residence nil-rate band.
For assets exceeding the £1 million cap, relief will drop to 50%, effectively subjecting eligible assets to a 20% inheritance tax rate, the firm noted.
Old Mill explained that for an individual owning a farm valued at £3 million, with a nil-rate band of £325,000, the first £325,000 is exempt from tax. The next £1 million qualifies for Agricultural Property Relief (APR) or Business Property Relief (BPR) at 100%, also remaining tax-free. However, the remaining £1.675 million would face a tax bill of £335,000.
Today, members of the National Farmers Union (NFU) have gathered in London to protest these changes. Approximately 1,800 members are participating in a large-scale lobby of MPs, alongside a separate protest planned for Whitehall.
NFU President Tom Bradshaw described the changes as a “kick in the teeth” for farmers, expressing to the BBC that there is a “huge sense of betrayal” from the Labour government.
