Breaking News: Government Abandons Farm Inheritance Tax Reform Amid Last-Minute Backlash

The UK government has unexpectedly abandoned its plan to impose a 20% tax on inherited farmland worth over £1 million, replacing it with a new threshold of £2.5 million. Environment Secretary Emma Reynolds announced the change after months of protests from farmers and concerns from Labour backbenchers.

The original plan, set to take effect in April 2026, would have ended the 100% tax relief on inherited agricultural assets that has been in place since the 1980s. However, the government has now decided to increase the threshold, allowing more family farms to avoid the tax.

Farmers had been vocal in their opposition to the original plan, citing concerns about the impact on their businesses and the rural community. The National Farmers' Union welcomed the change, with Head Tom Bradshaw saying it was a "positive step" for the industry.

The government's decision comes after a long period of lobbying and protests from farmers, who had argued that the tax would be unfair and damaging to the sector. The change is seen as a significant concession to the farming community, but it remains to be seen how it will be received by other stakeholders.

This is a developing story, and we will continue to provide updates as more information becomes available.