Increase in farming inheritance tax threshold brings relief for Wiltshire farmers
Government raises threshold, offering initial support for farms under pressure
Farmers across Wiltshire are welcoming the government’s decision to increase the inheritance tax threshold for farming businesses from £1 million to £2.5 million, following committed campaigning by rural associations and farming communities.
Tim Carson, a farmer in Pewsey Vale, Wiltshire, described the change as a vital first step to help protect the future of farms across the county and beyond.
“It really is a good start, and we’ve been campaigning hard for this since October 2024. We’ve demonstrated, contacted MPs, and worked closely with organisations like the National Farmers Union, Tenant Farmers Association, and Country Landowners Association to get the government to listen,” Carson said.
The increased threshold, announced shortly before Christmas, provides a welcome boost to farmers, allowing them to safeguard farms up to approximately 350 to 400 acres. If there are two spouses involved in the farming business, the threshold doubles to ÂŁ5 million.
Challenges faced by farmers in Wiltshire
Tim explained the significant impact that campaigning has had on farmers whose businesses are often small and family-run.
“Farming is a living, breathing beast that requires constant attention. Cattle and livestock need feeding every day, and for one-person units, taking time away for demonstrations meant finding cover and juggling responsibilities,” Carson said.
Despite the demanding nature of the campaign, he pointed to its positive achievements: “It shows the strength of feeling among farmers. What we do goes beyond farming – we’re custodians of the land and take pride in managing the countryside for future generations.
“When our livelihoods are under threat, farmers make their voices heard, because this is not just about us; it’s about protecting the managed and beautiful landscape we work in every day.”
Progress and next steps for farming inheritance tax
Looking ahead, Tim acknowledged the positive impact of the change to inheritance tax thresholds but stressed that there is still more work to do.
“The new cap provides protection for farms up to a certain size, but we must keep campaigning for larger farms owned by working farmers. With land and farm values continuing to increase, £5 million sounds like a lot, but it doesn’t go as far when you factor in acres of farmland, buildings, machinery, and a farmhouse.”
He also highlighted the need for cross-party collaboration on rural matters, pointing out challenges in gaining support from MPs who may be less familiar with the realities of rural life.
“The Labour Party is largely urban-based, and its members don’t always understand the countryside. They seem to be starting to get it now, especially the 100 rural Labour MPs. That said, we need collaboration from all political parties and continued engagement from our local Members of Parliament in Wiltshire,” Tim said.
Impact of rising land prices
Another concern for farmers is the rising price of land across the UK, driven in part by non-farming multimillionaires purchasing large tracts for personal or investment purposes.
Tim explained the challenges this trend brings for traditional working farms: “Land prices keep going up, and 20% inheritance tax on huge estates is insignificant for wealthy individuals with vast financial portfolios.
"These buyers are often detached from the day-to-day responsibilities of managing the countryside, which impacts how the land is cared for.”
With continued work needed, Carson remains determined to fight for fairer measures that recognize the essential work farmers do in maintaining the countryside and their vital contribution to the rural economy.