Major climbdown on inheritance tax raid on farmers as Starmer caves in after months of pressure
Starmer makes major tractor tax U-turn after months of protests
- Labour has significantly revised its controversial 'tractor tax' plan, which aimed to introduce inheritance tax for farmers.
- The original proposal, announced by Chancellor Rachel Reeves, would have charged 20 per cent on agricultural assets exceeding £1 million from April 2026.
- Following a year of protests from farmers, Labour has now raised the individual threshold for inheritance tax on agricultural assets from £1 million to £2.5 million.
- This adjustment means that couples can now pass on up to £5 million in qualifying agricultural or business assets without incurring inheritance tax.
- While farming groups like the NFU and No Farmers, No Food have hailed the change as a victory, some argue it is still insufficient, and the Liberal Democrats criticised the delay in addressing farmers' concerns.