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, opting instead to raise the threshold to £2.5 million. This sudden U-turn comes just days before the original policy was set to take effect in April 2026.

The move is a significant victory for farmers, who have been protesting the original plan for months. Environment Secretary Emma Reynolds announced the change, stating that the government has listened to farmers' concerns and is making adjustments to protect more family farms.

The original proposal, announced at last year's Budget, aimed to tax inherited agricultural assets worth over £1 million. However, the plan sparked widespread criticism from farmers and some Labour backbenchers, who argued it would unfairly target family-owned farms.

The new threshold of £2.5 million is expected to exempt many family farms from the tax, according to the National Farmers' Union. The Country Land and Business Association has welcomed the change, praising the government for recognizing the flaws in the original policy.

This is a developing story, and further details are expected to emerge in the coming hours and days. The government's decision to abandon the original plan is likely to have significant implications for the agricultural sector and will be closely watched by farmers and industry experts.