Inheritance tax exemption threshold for farmers increased to £2.5m

An update from the government today (23 December) confirmed that the £1m agricultural and BPR threshold will be increased to £2.5m. The change will be introduced to the Finance Bill in January and will apply from 6 April. This will allow spouses or civil partners to pass on up to £5m in qualifying agricultural or business assets between them, with a 50% relief applied to assets above the threshold. The reforms to Agricultural and BPR, including the original £1m threshold, were first announced in the 2024 Autumn Budget. The Budget announcement faced backlash from the farming communi...