In the Autumn Budget of 2024, Chancellor Rachel Reeves outlined plans to reform Inheritance Tax, sparking concern among UK farmers about the future of their estates.

Rod Cordingley, our valuation and asset management specialist at StephensonsRural, a Yorkshire-based rural property specialist since 1871, has addressed these changes and provides essential guidance for farmers facing the new tax environment in a new article for Farmers Guardian.

The article outlines the significant financial implications of the proposed changes.

For example, an average 350-acre commercial farm in the Vale of York, with a house and buildings, could easily be worth £4.3 million. If owned by one person who also has a 50% share in a farming partnership worth £225,000, along with a pension fund of £80,000, their total net worth would reach £4.605 million.

Under the new rules effective from April 2026 and taking into account the revised Agricultural and Business Property Relief of £1 million along with a personal allowance, the Inheritance Tax liability on such an estate could exceed £700,000 - a substantial tax burden.

Rod provides a plan to get started and shares a timeline of key dates to watch for the 2026 Inheritance Tax changes.

Read Rod’s article in the Farmer’s Guardian.

Ready to plan ahead?

Effective tax planning requires guidance from professionals who truly understand the agricultural sector and its unique challenges.

At StephensonsRural, we understand the complexities of farming and family dynamics, and we are equipped to help offer a solution that is both effective and appropriate for individual circumstances.

We can help make sure your farm and family are prepared for the upcoming Inheritance Tax changes.

Get in touch with the team:

James Stephenson - email at jfs@stephenson.co.uk or call 01904 489731

Rod Cordingley - email at rlc@stephenson.co.uk or call 01904 489731.