Inheritance tax plan for farms watered down after backlash

Government proposals to tax inherited farmland have been softened, increasing the threshold from £1m to £2.5m after protests from farmers and concerns from Labour backbenchers. The plan to impose a 20% tax on assets over £1m from April 2026 has faced backlash, with Environment Secretary Emma Reynolds stating the changes aim to protect family farms. Farmers have welcomed the revision, but some still find the tax burden unaffordable, prompting ongoing discussions and calls for further amendments by various political parties and organizations.