This article remains as a monument to the uncertainty and stress created by the labour government. In an announcement on 23rd December 2025, the limits have been increased to £2.5m for single persons and £5m for couples. Please read on as to the impact that was caused by Rachel Reeves’ Autumn budget before the announcement. It’s a relief for many farmers after the stress caused.
Chancellor Rachel Reeves’ Autumn Budget has delivered new challenges for the farming community. While the transferable Agricultural Property Relief (APR) threshold between spouses offers some relief on inheritance tax, other measures are set to increase costs and reshape farm business planning.
Inheritance Tax Concession
The headline announcement is that the 100% APR threshold can now be transferred between spouses, allowing families to avoid premature asset transfers on the first death. This will help farmers leave assets to each other as originally intended, securing up to £2m relief on the second death.
Responses from industry leaders were muted.
Property and Council Tax
There are concerns for those who have diversified into rental property, noting the sector is becoming increasingly unattractive with increased tax rates.
From 2028, a high-value council tax charge will apply:
- £2,500 annually on properties worth more than £2m
- £7,500 annually on properties worth more than £5m
This could significantly impact farmhouse owners in high-value areas.
Capital Allowances
Changes to capital allowances include:
- A new 40% first-year allowance on plant and machinery from January 2026
- A reduction in the main rate writing-down allowance from 18% to 14% (effective April 2026 for corporation tax and April 2026 for income tax)
Minimum Wage Increase
The minimum wage will rise by 4.1%, bringing pay for over-21s to £12.71/hour from April 2026.
Sugar Tax Extension
From 2028, the “sugar tax” will extend to milkshakes and coffees.
Conclusion
The Autumn Budget offers farmers a small inheritance tax concession but introduces new financial pressures through council tax, reduced allowances, wage increases, and levies on milk-based drinks. Careful planning will be essential to navigate these changes and protect farm business resilience.
We in business should not have expected anything else from an inept socialist government. The shirkers are being funded at the expense of the workers. We have to think positively. This cannot last.
Farm and Country Finance remains here to support you.