The widely-reported increase in Capital Gains Tax (CGT) has not come as a surprise. Whilst a rise is additional tax for individuals, the increase in rates for higher-rate taxpayers is not as significant as the higher-rate of income tax, which would have been extremely unwelcome.
The proposed changes to Inheritance Tax is going to impact the agricultural sector heavily. Farming families are using the assets they own and that have passed down generations to earn a living, whilst producing food for the country. I will be looking at this in much more detail over the coming days.
Earning a living in the agricultural sector is becoming harder and harder with the reduction of subsidies and being at risk of price changes due to the global economy that sets input and output prices. Families are now faced with an increase in Inheritance Tax. This could have consequences for the farming businesses ability to continue, in order for the tax to be settled.
Whilst the announcement is digested and further detail comes out on the reliefs that will be available, I will be keeping note on whether there are proposed changes to the criteria that need to be met for reliefs to be obtained.
A further change for Inheritance Tax was announced in April 2027, namely that pension pots will be brought into the estate and taxable.
With the changes being applied from April 2026, there is time to understand what the impacts could be and I will be in contact with my clients in due course.
If you are concerned or if you have any questions, please get in touch to discuss these.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.