Back to today’s briefing

Story perspectives

Labour Raises Inheritance Tax Threshold, Farmers Divided

12/28/2025

50 8 Full Breakdown

Summary

Story summary

The Labour Government raised the inheritance tax threshold from £1 million to £2.5 million, effective April 2026, allowing couples to pass on estates up to £5 million without tax.
Farmer Olly Harrison praised the policy as a victory for rural communities.
Since the initial tax announcement, 6,270 farming businesses have closed.
Critics say the policy reversal comes too late for many farmers, according to Shadow Business Secretary Andrew Griffith.

1 of 1

Story summary

The Labour Government raised the inheritance tax threshold from £1 million to £2.5 million, effective April 2026, allowing couples to pass on estates up to £5 million without tax.
Farmer Olly Harrison praised the policy as a victory for rural communities.
Since the initial tax announcement, 6,270 farming businesses have closed.
Critics say the policy reversal comes too late for many farmers, according to Shadow Business Secretary Andrew Griffith.