Inheritance Tax & Succession
Update December 2025
On the 23rd December 2025, following significant lobbying by farmers, the UK Government announced that they will introduce an amendment to the Finance Bill 2025 to increase the threshold at which 100% Agricultural Property Relief and Business Property Relief applies, from £1 million to £2.5 million per estate, with 50% relief continuing to apply to qualifying assets above that level. This will allow spouses or civil partners to pass on up to £5m in qualifying agricultural or business assets between them before paying inheritance tax, on top of existing allowances. This amendment will apply to people who are widowed and have lost spouses or civil partners before the policy was introduced. The change will be introduced to the Finance Bill in January and will apply from the 6th of April 2026.
Following the UK government announcement on 23rd December 2025, all information below, relating to inheritance tax, has been superseded and will be updated during spring 2026.
The Autumn 2024 budget changed the rules around inheritance tax. As a result, farmers and landowners are now taking more time to consider succession planning and how it fits in with long term business goals.
Succession planning is an essential part of business management. A basic understanding of the new tax rules will be invaluable when considering different succession options available to you, and mitigating tax liability.
This page provides you with a number of resources and videos to support your understanding of the main changes to the UK tax rules, as well as links to advice and support to help you plan ahead.
If you or someone you know is finding this to be a difficult time, RSABI provides practical, emotional and financial support to all people involved in the Scottish agricultural industry. Their team are friendly, professional and all support is offered in confidence. They support people of all ages, including those affected by illness, accident, bereavement and those struggling with their mental wellbeing.
You are not alone. If you are struggling, call their helpline for support at 0808 1234 555
Following the Autumn Budget the rate of Capital Gains Tax (CGT) was increased with immediate effect. For farmers this means that any large sales need to be carefully considered and to seek advice from an accountant with the correct Agricultural knowledge. This document explains the rates of CGT, the allowances and the various forms of relief that are available regarding Capital Gains Tax.
Specialist Advice with Funding Available
Through the Farm Advisory Service, you can receive grant funding to receive specialist advice to help you with succession planning. Through this plan you will receive expert guidance on one of the hardest stages of running a business, to give you the confidence to change your lifestyle knowing your business is in safe hands. This can include advice on the financial position of the business, its viability, retirement options, successors, legal considerations and tax implications.
National Minimum Wage & Employment Taxes
The Autumn Budget has also introduced changes to National Living Wage, National Minimum Wage, Employment Taxes, Income Taxes and Pensions. This article breaks the changes down into detail.
For specific enquiries or for more information about your options, phone the FAS advice line on 0300 323 0161 or email advice@fas.scot
The Advice Line is open between 9 am and 5 pm Monday to Friday, or you can email anytime. It can provide up to 30 minutes of free advice, from a consultant, on a range of issues including advice on changes in tax and succession planning.
Most family farms wish to keep the business within family, but succession can be a tricky subject to approach. However, it is possible to engage in succession planning that is rewarding and reassuring for everyone involved. This webinar gives an overview of how to get started, as well as highlighting the numerous materials available to aid with succession planning.
Want to speak to someone about succession planning? You can put in a request for free specialist advice here.
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