The impact of inheritance tax - why farmers should not leave succession planning to the last minute

6 April 2026 is the date when changes to Inheritance Tax ("IHT"), specifically in respect of Agricultural and Business Property Relief, will be implemented. This will impact farmers directly, as those who own agricultural and business property will not be able to benefit from full IHT relief where they previously would have.

The agricultural industry has demonstrated they are aware of how this will impact their businesses and their successors, but many have not yet put in place a robust plan to deal with that impact. The government’s draft legislation is clear that these changes will be implemented on 6 April 2026, despite hopes that the date would be pushed back or that the government would take a lighter approach. Therefore, it is imperative to act now to ensure that your family farm is protected.

Here are three key reasons to discuss your succession plans with a trusted advisor:

Death and incapacity

Whilst we all want to believe that we have more time, none of us know what is round the corner. The average injury rate in the agricultural sector is 21 times higher than the standard rate of accidents across all industries combined. This means farmers are at a much higher risk of being left incapacitated or dying before they implement their succession plan. In addition, more senior farmers may start to lose capacity and may no longer be capable of effecting the changes required to ensure their wishes are carried out. If you lose capacity or die before putting a robust succession plan in place this could give rise to increased costs for your family both in IHT and professional fees.

Complexities

Complex family dynamics can impact a succession plan greatly. In addition, the diversification of farming businesses to include not just the farm itself but renewables, agritourism or a farm shop can add additional complications to a succession plan and, in particular, IHT planning.

These complexities may mean that your succession plan takes longer to put in place than anticipated due to the careful consideration required surrounding them.

Time sensitivity

Whilst advisors will, of course, be more than happy to assist you at any stage of the process, they will have a limited amount of time to do so. As 6 April 2026 approaches, it is expected that a higher volume of enquiries about what to do regarding IHT will appear. If you have a specific, trusted advisor you want to use, you should be in touch with them now to ensure you have plenty of time to organise estate planning and ensure that you have the best advice when doing so.

The Autumn 2025 budget, planned for Wednesday 26 November may also bring additional changes to IHT that could have a further impact on succession planning.

For more details of how the IHT changes will impact you, please visit our IHT hub. If you would like to discuss the specifics of how the changes will affect you, please get in touch to speak with one of our wills and estate planning experts.