The Times quotes Henry Fea on the potential options available to farmers to help minimise inheritance tax bills
Farmers are facing the challenge of reevaluating their succession and business plans due to impending changes to inheritance tax breaks effective from April 2026.
Henry Fea, Private Client Partner, speaks to The Times and highlights that:
There’s a whole generation of farmers who have planned their business and their succession on the basis of current rules... Now, from April 2026, those business plans need to be ripped up and started again.
Henry points out the stark reality for some farmers:
The honest, best tax result for some people is not to survive beyond April 2026… That’s not because of anything they’ve done: they have relied on these current rules all of their lives.
Options such as gifts, trusts, and life insurance are available but come with complications. The seven-year rule for gifts is problematic with the new rules approaching rapidly, and Henry questions the practicality of asset transfer.
Do you want to be giving them quite an asset at that time? There’s the normal risks: death, divorce and bankruptcy... if they give things away at 65, what are they going to live on?
Trusts will face a new tax regime, and while life insurance could cover some tax liabilities, it may not be feasible for all.
Henry also casts doubt on the government's suggestion that farmers could pass on £1.5 million individually or £3 million as a couple, due to the limitations and tapering of the residence nil rate band.
For every £2 over £2 million that your estate is worth, the residence nil rate band allowance drops by £1.
Read the full piece in The Times here.
