Farmers in the United Kingdom block London's streets with tractors as they protest an inheritance tax imposed by the government on February 10, 2025.
LONDON
The British government on Tuesday increased the inheritance tax threshold from £1 million ($1.3 million) to £2.5 million ($3.3 million) after months of pressure from campaigners and lawmakers representing rural areas.
In a statement, the government said that the level of the Agricultural and Business Property Reliefs threshold will be increased when it is introduced in April 2026.
Last year, Treasury chief Rachel Reeves announced a plan to tax inherited agricultural assets worth more than £1 million at a rate of 20%, a move that sparked backlash from farmers.
The plan was labelled a “family farm tax” by critics, with farmers saying that it would prevent many of them from passing on their farms to their children.
The reversal came after efforts from a group of Labour MPs who had been pushing for the threshold to be changed.
Environment Secretary Emma Reynolds said: "We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms."
National Farmers' Union welcomed the announcement, saying: "These changes mark a huge victory for British farmers."
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