Farmers who've hit this age could get exemption from inheritance tax in u-turn

Farmers aged 80 and above could get exemption from inheritance tax, it has been reported. The new Labour Party government is looking at changing the rules so older farmers do not have to live for seven years after making a gift to avoid the tax.

The Guardian reports The Treasury is understood to be considering including amending gifting rules for over-80s so they can pass on their farm to their family without having to live for seven years after making the gift after a backlash to the Budget.

Tom Bradshaw, president of the National Farmers’ Union, said: “The average age of death in the UK is around 80, so they should bring it down to 73 to allow them to use the seven-year gifting rule. If they are looking at how they create an exemption for the elderly members of the industry then the exemption should come in seven years before the average age of death.

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"I would prefer an exemption before April 2026, when the rules come in, so you can make the transfer and don’t have to survive the seven years, but we have far better options on the table if they come out for consultation. We could come up with a policy that would answer the questions but be far better for the industry.”

Martin Williams, an arable farmer from Herefordshire and one of the organisers of Tuesday’s protest said: “We are grateful for the Treasury for looking into it, but it’s a shame the messaging has caused so much stress in the meantime. We understand the needs of public service investment but ask the government what their ambition for this tax is? We are asking for a continued dialogue with farmers.”

The environment secretary, Steve Reed, told the Country, Land and Business Association conference on Thursday that the government is “listening” to farmers. He added: “And I’m going from this to a meeting with No 10 to discuss with them my thoughts on what we might need to do. I’m not pretending these decisions are easy. I know the pain people feel. Many other people tell me how difficult this is, of course, we’ll listen to try and understand how we can make that easier to bear.”

A Treasury spokesperson said: “We remain committed to fully implementing the policy and are not considering mitigations.”