#inheritance-tax

#inheritance-tax

The Efra committee has urged the government to delay proposed changes to inheritance tax for farmers, advocating for more time to formulate effective policies.

Maximizing the tax-free thresholds at the date of death is vital for limiting exposure to capital acquisitions tax, particularly for inheriting property.

The findings suggest that Italy's tax system is more regressive than previously estimated, disproportionately benefiting the top 7% while exacerbating inequalities between the richest and poorest.

In the Autumn Budget, the Government announced significant changes to a valuable IHT relief, APR. Under the proposed changes, effective from 6 April 2026, a £1m cap will apply to agricultural property, which is, under the current rules, wholly relieved from IHT regardless of its value. Any value exceeding the £1m cap will only benefit from 50% tax relief rather than 100% relief, leading to a considerable increase in tax liability for farmers.