After 14 months of relentless campaigning, NFU Scotland is proud to confirm a significant victory in the fight to protect family farms from punitive inheritance tax changes.
On 23 December 2025, the UK Government announced that the Inheritance Tax (IHT) threshold will be raised to £2.5 million per spouse, following sustained pressure from NFU Scotland and our fellow UK farming unions.
This outcome is a direct result of the unified voice of Scottish farmers and crofters, who mobilised at every level to oppose the originally proposed reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR). These proposals, if left unchanged, would have devastated generational succession and threatened the viability of farming businesses across the country.
What has changed?
From 6 April 2026, revised Inheritance Tax rules will apply to agricultural and business assets:
- 100% relief on the first £2.5 million of qualifying agricultural and business property per individual.
- 50% relief applies to qualifying assets above that threshold, taxed at a reduced rate of up to 20% (instead of 40%).
- Tax due on these assets can be paid over 10 years, interest-free, helping ease cashflow pressures.
- Any unused £2.5 million allowance is transferable between spouses or civil partners, meaning a couple can pass on up to £5 million with full relief.
- This sits on top of existing allowances, such as the £325,000 nil-rate band and spousal exemptions.
How we got here
From the moment the reforms were announced in late 2024, NFU Scotland made clear: these changes were wrong.
- We lobbied across party lines at Westminster.
- We worked with thousands of members to contact MPs and share the human impact of the proposals.
- We built cross-industry coalitions with other UK farming unions.
- We held rallies and briefings, secured media coverage, and kept the pressure up at every turn.
This has been one of the most intensive and emotional campaigns in our history and a shining example of what this Union can achieve when it acts with unity, purpose and persistence.
Thank You
We want to thank every NFU Scotland member who stood with us. This win belongs to all of you.
What’s Next?
While this is a huge step forward, there is still work to do.
We will continue to:
- Monitor the implementation of the revised thresholds and reliefs.
- Push for long-term certainty on APR and BPR in future Finance Bills.
- Hold the Government to account on its promise to support generational farming.
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Be part of future wins
This campaign shows the power of collective action. Join or renew your NFU Scotland membership today and stand with us as we continue to defend and promote the future of Scottish farming.