Inheritance tax changes for agricultural property

24 December 2025

The government has announced changes to inheritance tax relief for agricultural property, increasing the threshold for 100% relief from £1 million to £2.5 million from April.

Under the revised arrangements, farms owned by spouses or civil partners with a combined value of up to £5 million may be passed on without an inheritance tax charge. Above this level, inheritance tax will apply at a reduced rate of 20%, with up to ten years available to pay before interest is charged.

Although the changes apply specifically to agricultural property, they are relevant to the transport and logistics sector, where many businesses are family-owned and asset-heavy.

The announcement highlights the importance of succession and estate planning for transport operators, particularly where business continuity relies on passing assets to the next generation without disruption. Policy developments in this area may also be of interest to owner-managed transport businesses reviewing their long-term planning arrangements.