No further changes to IHT planned, DEFRA secretary says
9th January 2026
DEFRA secretary of state Emma Reynolds said that there will be no further changes to the inheritance tax reliefs for farmers.
Reynolds MP gave a speech during the Oxford Farming Conference yesterday, 8th January.
When asked about further changes to the inheritance tax, the environment secretary said: “That’s it, I’m afraid… it is the people in this room who have engaged with us constructively and relatively quietly that have had an influence on this process, not the people sounding their horns.”
The MP referred to farmers who gathered outside the Oxford Farming Conference to continue their campaign, saying the increase in the IHT threshold still does not go far enough.
During her speech Reynolds MP stated: “Since starting this role in September, I’ve listened to farmers and stakeholders about your concerns on proposed changes to inheritance tax. You told me the threshold was too low. You told me it would hit small family farms – the very farms we want to protect.
“Farms that have been in families for generations. Farms you understandably want to pass on to your children. We have listened, and we are making changes – increasing the inheritance tax threshold for agricultural and business property relief from £1 million to £2.5 million.
“That means couples can pass on up to £5 million pounds without paying inheritance tax on their assets. That’s on top of the existing allowances, such as the nil-rate band.”
The MP claims that around 85% of estates claiming APR, including those also claiming BPR, will pay no more inheritance tax.
READ MORE: Farming community reacts to SFI changes
Read more farm business news.
