Farmers Celebrate Sir Keir Starmer's Christmas U-Turn on Inheritance Tax
The threshold for family-farm inheritance tax relief has increased from £1 million to £2.5 million, with estates valued up to £5 million now exempt from the tax. This significant tax climbdown followed a personal intervention by the prime minister. NFU president Tom Bradshaw said there were two constructive meetings with the PM that contributed to the change.
Environment Secretary Emma Reynolds announced the climbdown, stating that the policy will protect more ordinary family farms. The NFU added that the change will greatly reduce the tax burden on many family farms, noting that previous changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) announced in last year's budget had been described as a shock.
Conservative leader Kemi Badenoch called it a huge U-turn and a win for the Conservative campaign against Labour’s family farm tax. Conversely, Labour’s Victoria Atkins described it as a partial U-turn and commented that it was too late for some farmers.
In December, around 30 Labour MPs abstained in a Commons vote on the inheritance tax proposal, with Markus Campbell-Savours voting against it and subsequently having his Labour whip withdrawn. There were also protests, including dozens of tractors at Westminster, as part of campaigns against the tax and related policies.
