UK Chancellor Announces Inheritance Tax Reforms

Farmers across the UK have condemned recent inheritance tax reforms announced in Chancellor Rachel Reeves' Budget, describing them as misguided and potentially damaging to family farms. Starting April 2026, the first £1 million of combined business and agricultural assets will remain tax-free, but assets exceeding that threshold will face a 50% relief rate, leading to significant tax liabilities for many farms. Critics, including the NFU Cymru and various MPs, argue that the changes threaten food security and will force family farms to sell land to cover inheritance tax costs. The reforms are expected to affect thousands of estates, with warnings that they could deter future investments in farming. Farmers have expressed frustration that the government has ignored their concerns, asserting that these changes will have a detrimental impact on the rural economy. The situation has sparked calls for more government support for the agricultural sector, particularly in light of the challenges faced post-Brexit.