Breaking News: Government Ditches Farm Inheritance Tax Plan

The UK government has abruptly watered down its plan to impose a 20% tax on inherited farmland, increasing the threshold from £1 million to £2.5 million. Environment Secretary Emma Reynolds announced the change after MPs left Parliament for the Christmas recess.

The immediate impact is that many family farms will be exempt from the tax, with the National Farmers' Union welcoming the move. The change comes after months of protests from farmers and concerns from some Labour backbenchers.

The original plan, announced last year, would have seen a 20% tax on inherited agricultural assets worth over £1 million from April 2026. However, the government has now decided to increase the threshold to £2.5 million, effectively protecting more family farms from the tax.

The government claims it has listened to farmers' concerns and is backing the "backbone of Britain's rural communities". The change is seen as a significant climbdown, with the government previously insisting that the tax was necessary to address wealth inequality.

This is a developing story, with further details and reactions expected in the coming days. The government has not yet confirmed when the revised plan will be implemented, but it is expected to be announced in the new year.