As part of the Autumn Budget the government set out it’s proposal to restrict Agricultural Property Relief and Business Property Relief to £1 million per individual from 6 April 2026, now commonly referred to as the “family farm tax”. At present there is no cap on these inheritance tax reliefs.
At robinson+co we have been speaking relentlessly on the topic since the announcement on 30 October 2024. However, despite the initial communication that we could expect to see a policy document or draft legislation mid-January 2025 this still hasn’t been published. Our initial advice was to think about a plan, consider property values but wait for the legislation before incurring the professional fees of getting the plan actioned.
Despite the protests and individual MP’s challenging the proposed changes the government seems determined to stand firm.
The timeline for the publication of the draft legislation is currently unknown but we do have the following legislative timeline;
26 March 2025 – Spring statement. This is another fiscal event when the government might formally consult on the family farm tax, or even legislate for it.
July 2025 – Legislation day. First draft of Finance Bill could be published on L-Day.
October 2025 – Autumn Statement. Another opportunity for the new law to be legislated.
November 2025 – “Ways and Means” motion passed by the House of Commons, giving the family farm tax temporary legal affect until the Finance Bill passes.
Late 2025/early 2026 – Third reading. The final vote on the Finance Bill in the House of Commons and the last chance to make amendments.
April 2026 – Bill receives Royal Assent and becomes law.
Our agricultural partner, Darren Mewse, said “planning for succession within a farming business is a complex matter, all farms are structured differently and each farm requires advice tailored to them. There are other taxes such as capital gains tax and stamp duty land tax to consider when moving assets between family members, not receiving the legislation in a timely manner is going to put pressure on the farms professional advisors to implement the plan for succession once it is received.
