# Ministers raise inheritance tax threshold for farmers in climbdown after protests

By Danni Hewson — 2025-12-23

Danni Hewson, head of financial analysis at AJ Bell, said: “Thousands of farmers and family-owned businesses will be celebrating on news the government has announced a retreat on its inheritance tax plans after months of protests.

“Combined with changes announced during last month’s Budget, it will allow spouses or civil partners to pass on up to £5 million in agricultural or business assets.

“For months the government had been accused of being tone deaf when it came to the impact IHT changes would have on jobs and livelihoods, with many farmers and business owners warning of the potential impact on local communities and supply chains.

“This decision will feel like an early Christmas present for those who had been forced to consider scaling back investment, selling off assets, or even selling the entire business with the potential for huge job losses.

“The government has promised to deliver growth and today’s climbdown shows that they have been listening, but it follows months of uncertainty and worry about whether the next generation would be able to take over businesses that their parents had worked hard to create.”

Canonical: https://experts.pressassociation.com/expert/9/views/7d8069a1a6dd1b3b