Savills – The Farmland Market, Jan 2025

The report by Savills "The Farmland Market, Jan 2025" examines the implications of inheritance tax reform on the farming sector. The reformed inheritance tax is set to impact most family farms, as it becomes unaffordable for many. The reform restricts 100% relief to the first £1 million of agricultural and business property, with a 20% effective tax rate thereafter. This change could deter investment in the farming sector, as smaller farms will face significant liabilities. The government offers a payment plan to help farmers manage the tax burden, but the reforms necessitate careful tax planning. The policy's fairness and impact on farm investment and growth are under scrutiny.