Inheritance tax has become one of the most contested policy issues in British politics, particularly following the Labour government's October 2024 Budget which removed agricultural property relief from farms worth over £1 million — prompting mass protests by farmers across the UK.
Reform UK's Position
Reform UK wants to abolish inheritance tax entirely. The party argues that inheritance tax is a double tax — levied on assets that were already taxed when they were earned — and that it forces families to sell businesses and farms that have been built over generations.
The Farmers' Revolt
The Labour Budget change sparked unprecedented protests from farming communities. Tens of thousands of farmers descended on London in November 2024 to protest what they described as a family farm tax that would force the sale of agricultural land that had been in families for generations.
Frequently Asked Questions
Reform UK wants to abolish inheritance tax entirely. They argue it is a double tax on assets already taxed during a person's lifetime, and is particularly unfair to farmers and small business owners.
In the October 2024 Budget, Labour removed agricultural property relief from farms over £1 million in value, meaning farmers must pay 20% inheritance tax on the agricultural portion of their estate above that threshold. This triggered major protests from farming groups.
Inheritance tax is charged at 40% on estates above the nil-rate band of £325,000 (or £500,000 if the estate includes a main home passed to direct descendants). Some reliefs exist for business and agricultural assets.
Following the 2024 Budget, farmers with estates over £1 million in agricultural value will pay 20% inheritance tax on assets above that threshold, after the government removed full agricultural property relief. The change takes effect in April 2026.
Reform UK, the Conservatives, and many farmers' organisations including the NFU oppose the change. Reform UK has pledged to abolish inheritance tax entirely, including removing the new farm tax introduced by Labour.
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