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‘Tractor Tax’ relief set to rise from £1million to £2.5million providing reassurance to Farmers across the country
The government recently announced that the Inheritance Tax relief threshold for Farmers is set to rise from £1million to £2.5 million as of April 2026. The new changes will allow spouses or civil partners to pass on potentially up to £5 million in qualifying agriculture or business assets between them.
The government have listened to the concerns from the farming community about the crucial need to protect farms. Many farmer organisations have protested against the new tax changes since the ‘Tractor Tax’ was first introduced and to raise awareness of the important role farmers play in our country.
“The previous tax changes left the majority of farmers feeling enormous pressure and stress to generate enough income to pay the inheritance tax. This left many farmers feeling that the only way to offset this would be to sell land which over time would shrink the size of the farms and stop the family business being passed down to generation after generation.
It provides hope for many farming families and perhaps we will see the government reconsider more farming tax decisions.”
Emma Boys-Smith
Solicitor
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