www.sustainweb.org/blogs/nov24-farming-budget-inheritance-tax-apr/
"The new rules introduce a threshold: combined agricultural and business property assets up to £1 million will still receive 100% relief, but anything above that will be taxed at an effective rate of 20%, payable over ten years interest-free.
However, there are notable caveats: farmers may avoid the tax by transferring property at least seven years before death. Many will also be able to take advantage standard household tax allowances if the farm is owned by a couple, potentially pushing up amount they can pass on tax free to £3 million.
The tax-free allowances will vary depending across farms, and given the historically high value of agricultural land, machinery, and buildings, many farm businesses will now need to prepare for inheritance tax in ways that were previously unnecessary.
Why is this tax being introduced?
The rationale behind the changes is clear: for decades, farmland has served as a tax shelter for the wealthy. Introduced in 1992, the inheritance tax exemption for farmland allowed multi-millionaires, and in some cases billionaires, to avoid significant tax liabilities. Economist Tim Leunig pointed out that farmland became "the best way to leave £100 million to your kids," exacerbating wealth inequality and inflating land prices in the process.
These inflated prices have made it difficult for new farmers to enter the industry, for tenant farmers to purchase the land they work, and for communities to buy land when it comes up for sale. In this sense, the uncapped relief has been detrimental to farming. Labour’s introduction of a cap aims to close this loophole and prevent land from being a convenient tax dodge for the ultra-rich."