"The reduction in inheritance tax relief first announced in the October 2024 budget left many living under a cloud of uncertainty as to whether they had a future. Farms and businesses that had been in families for generations faced mortgaging their future growth prospects or having to sell up to pay huge bills on the current owner's death."
"This is a welcome early Christmas present for many family farmers and business owners,"
"For many farms and family businesses, faced with paying charges based on their land and property values, regardless of their profits, the tax poses an "existential threat", said Tallon."
Government confirmed an increase in the inheritance tax relief threshold for assets qualifying for agricultural property relief (APR) and business property relief (BPR) to £2.5 million. The National Farmers Union, FBUK and Commons and House of Lords select committees lobbied for the change. The increase reduces potential IHT bills that threatened family farms and long-standing businesses whose valuations are land- and property-based. The October 2024 budget had removed uncapped 100% APR and BPR and proposed that after the first £1 million allowance assets would only receive 50% relief, creating an effective 20% IHT rate. Advisers say the change eases immediate pressure but does not fully resolve concerns.
Read at London Business News | Londonlovesbusiness.com
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