Farmer Protests and Why Inheritance Tax Changes May Affect You

The recent protests by farmers in London highlight growing concerns about upcoming changes to inheritance tax (IHT), particularly for family-owned farms and estates.

From April 2026, agricultural assets worth over £1m will be subject to a 20% tax, potentially forcing families to sell land or businesses to cover costs. While these changes directly impact the farming community, they underscore the broader need for proactive estate planning to minimise tax burdens and protect family legacies. 

Why Estate Planning Matters

IHT is charged at 40% on estates exceeding the tax-free threshold. Careful planning can help reduce liabilities and ensure your assets are passed on efficiently. Key strategies include:

Tax Reliefs & Exemptions: Spouse exemptions, Business Property Relief, and Agricultural Property Relief may apply, potentially reducing IHT liabilities.

Lifetime Gifting: Using lifetime gifting allowances including your annual exemptions (£3,000 per year), gifting out of excess income and maximising the benefit of the seven-year rule can remove assets from your taxable estate.

Trusts: Setting up trusts can help protect assets for future generations while providing tax efficiencies.

Charitable Giving: Whilst any gifts to charities are exempt, leaving 10% or more of your estate to charity reduces the overall IHT rate from 40% to 36%.

With evolving tax laws and personal circumstances, professional advice is key to effective estate planning and our expert team can help. We specialise in guiding you through the whole estate planning process to provide you with the advice you need, including inheritance tax planning, trust advice, and Lasting Powers of Attorney.

If you have Wills in place, it is important to review these regularly, at least every 3-5 years, or sooner if:

• Your personal circumstances change (e.g., marriage, divorce, a new partner, or growing family responsibilities).
• Your financial situation shifts, such as acquiring or selling significant assets.
• You wish to amend beneficiaries, ensuring your estate reflects your current intentions.
• You purchase or inherit property, which may require specific provisions.

Ensuring you have an up-to-date Will safeguards your loved ones and prevents unintended outcomes.

Expert Guidance for Your Estate Planning

Our team is here to help you ensure your assets are protected and your legacy preserved. Get in touch today.