UK Government Increases Inheritance Tax Threshold Proposals To £2.5 Million

The UK Government proposals to tax inherited farmland thresholds have been increased from £1 million to £2.5 million, the BBC reported on Tuesday. Concerned farmers have pushed back on the initial proposal since it was announced over a year ago.

Originally, UK ministers indicated they would begin imposing a 20% tax on inherited agricultural assets worth more than £1 million. Formerly, there had been 100% tax relief in place since the 1980s.

Environment secretary Emma Reynolds said, “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.

“It's only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain's rural communities.”