Do farmers pay inheritance tax?
Since 6 April 2026, 100% agricultural and business property relief together is capped at £2.5 million per estate, and qualifying property above that gets 50% relief, according to HMRC's Agricultural Relief guidance. Unused allowance can pass to a surviving spouse or civil partner, so a couple can pass on up to £5 million of qualifying property with full relief, on top of the nil-rate bands.
The government raised the allowance from the £1 million first announced at the 2024 Budget on 23 December 2025. Its impact note estimates that up to 1,100 estates will pay more tax in 2026 to 2027, of which up to 185 claim agricultural relief. Tax on relieved property can be paid in 10 interest-free yearly instalments.
Relief applies only to the agricultural value of qualifying land and buildings, not machinery or livestock.
When is the next figure out?
OSR does not run a fixed release calendar for letters: casework correspondence is published when a case concludes, often within days of a high-profile claim. The casework issues log is updated weekly, aiming for each Wednesday. The rolling regulatory work programme, which shows assessments and reviews in progress, is updated four times a year. During formal pre-election periods OSR can still intervene publicly, but only where a statement could significantly affect the debate presented to voters.
Every official release due in the next two weeks is on the release calendar.
Where the figures come from
- UK Statistics Authority and Office for Statistics Regulation (OSR)Find UK Statistics Authority and OSR letters on how politicians and officials used statistics, search the casework log, and raise a concern yourself.
Related questions
- What is the inheritance tax threshold, and how many estates pay it?
- What subsidies do UK farmers get?
- How much do UK farmers earn?
This answer says where the official figures are published and how they are defined. It gives no verdict on any claim. To report an error, send a correction request. More questions about farming and food: all Farming and food questions.