Inheritance Tax Changes to Protect Family Farms
- Adam Jogee MP
- Dec 23, 2025
- 2 min read
I welcome the Government’s announcement to raise the inheritance tax threshold for agricultural and business property – a change that will make a real difference for family farms here in Newcastle-under-Lyme, across Staffordshire and throughout the country.
From April 2026, the threshold for Agricultural Property Relief and Business Property Relief will rise from £1 million to £2.5 million per person. For married couples and civil partners, that means up to £5 million of qualifying agricultural or business assets can be passed on before inheritance tax is paid.
Why this matters for farming families
Family farms are often built up over generations and rooted in our communities. They play a vital role in feeding the country, caring for the land and supporting local jobs. For many families, the ability to pass a farm on smoothly is not just a financial issue, but about safeguarding a way of life.
That is why inheritance tax reforms must strike the right balance – ensuring fairness in the system while avoiding unintended consequences for genuine family farms when it comes to succession planning.
Raising farmers’ concerns in Parliament
Following the Budget, I raised these concerns directly in the House of Commons, reflecting conversations I have had with farmers locally. I supported reform, particularly action to tackle land banking and to ensure those with the most pay their fair share, but I was clear that we must not risk harming small and medium-sized family farms in the process.
It's right that the Government has listened and acted.
What the new threshold will change
Raising the threshold to £2.5 million per person achieves the right balance. It focuses the system on making sure those with the most pay the most, while providing reassurance to farming families planning for the future.
Treasury forecasts show that around 85 per cent of all estates claiming agricultural property relief in 2026–27, including those also claiming business property relief, are expected not to pay any more inheritance tax as a result of these changes. That means the vast majority of family farms will be protected, while the system remains fair.
Standing up for Newcastle-under-Lyme’s farmers
Farming families in Newcastle-under-Lyme and Staffordshire work incredibly hard. They tend our land, feed our communities and contribute hugely to our local economy. I will always stand up for them and make sure their voices are heard – locally, regionally and nationally.
This announcement shows that when farmers’ concerns are raised constructively and consistently, the Government listens. I will continue working closely with farmers and rural organisations to ensure these reforms are implemented properly and that family farms are supported for the long term.
