Farmers and landowners are being urged not to make knee-jerk decisions amid the fierce fallout from the chancellor’s changes to inheritance tax.
Specialist rural land and business lawyers at legal firm Lindsays in Dundee and Perth have been advising clients in the wake of the controversial UK Budget announcement.
With debate over the so-called “family farm tax” intensifying, including Tuesday’s mass farmers’ march on Westminster, they are urging those potentially affected by change not to make any alterations to their enterprise without careful consideration.
And, owing to the complex nature of the changes, they are advising farmers that any plans are best looked at within a full review of their personal legal and financial affairs.
What are the new rules for inheritance tax?
A new £1 million threshold for agricultural and business property reliefs was announced by the chancellor.
Agricultural and business property assets worth more than this will be liable to inheritance tax at an effective rate of 20% from April 2026.
Lindsays partner Leanne Gordon, who advises farmers and landowners across Scotland, said: “There’s understandable concern around the future of family farms in particular.
“Amid the furore surrounding the announcement on inheritance tax, the temptation for those whose families may be affected by the change is to act fast.
“Decisions that need to be made will fundamentally affect families and businesses.
“Therefore, careful thought and consideration should be given before any actions are taken. It is important not to rush.”
She added: “Every farming and land enterprise is unique, as is every family situation.
“There will not be a one-size-fits-all course of action to take. Every single decision needs to be taken around individual circumstances.
“That’s the message we have been sharing over the past couple of weeks.”
Lindsays has a large rural client base supported by its specialist team, as well as experts who deal with family law and personal affairs, such as wills.
Scottish budget concerns
First Minister John Swinney highlighted his concerns about the UK Government’s planned changes to inheritance tax when he spoke at the AgriScot event in Edinburgh last week.
At that same event, he faced calls from the National Farmers’ Union Scotland to guarantee multi-year funding for agriculture in the Scottish Government budget on December 4.
This follows the second major UK Budget change for Scottish agriculture.
Ring-fenced money for the industry was removed, with that cash instead becoming part of the overall block grant given by Westminster to Holyrood.
Mrs Gordon said: “Set against the backdrop of changes which are coming to support programmes for agriculture in any case, there is a huge amount for families and businesses in the rural sector to consider.
“It will take time and detail that we do not have yet in order to do that properly.
We would advise against rushed reactions around selling land or transferring ownership.” Leanne Gordon
“On so many fronts, we need to be able to understand the practical impact of policies to help advise people about how to navigate the legal complexities surrounding them.
“We would advise against rushed reactions around selling land or transferring ownership without considering all the circumstances and consequences of any changes.”
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