Farmers slam Labour inheritance tax u-turn because 'there are better options'

A proposed Labour Party inheritance tax u-turn has been slammed by farmers - who say there are "better options on the table". The Guardian reported the Labour Party government is floating a change to the new IHT rules to make it easier for those 80 and over to pass down their farm to loved ones without incurring the 20 per cent levy.

However, the National Farmers Union's president Tom Edwards broke down what Labour needs to do to win back the trust of farming communities. He told GB News: "I would prefer any 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.” During an interview with the BBC's Victoria Derbyshire, Exchequer Secretary to the Treasury James Murray stated: "No, we're not going to make any changes. This is the policy that the Chancellor announced, and this is the policy of the government.

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"And I was with the Secretary of State from Defra yesterday talking to MPs, and we were both setting out the government policy and how it will work. What's important is to emphasise that this is a proportionate response, to make sure that we protect small family farms, whilst also raising the revenue we need to support public services which will benefit rural communities too."

A HM Treasury spokesperson told GB News : "We remain committed to fully implementing the policy and are not considering mitigations." Inheritance tax typically applies to assets worth more than £325,000, or £500,000 if a family home is being passed on.

However, farms have historically enjoyed almost complete exemption from inheritance tax through two key policies: Agricultural Property Relief (APR) and Business Property Relief (BPR).