Will couples be able to pass on £3m tax free?published at 13:05 GMT 20 November 2024
By Anthony Reuben
Defending the government’s
changes to inheritance tax on farmland, Angela Rayner said “couples can pass on
£3m tax free”.
From 2026 the first £1m of
farmland inherited will be exempt from inheritance tax with 20% being charged
on amounts over that.
There are other exemptions
that could increase the tax-free amount, but they will not be available to all
couples.
If a farm was owned by a
couple who were married or in a civil partnership, they would get an allowance
of £1m each for the agricultural land, making a total of £2m.
Then they would each have an
allowance of £325,000 as their standard property allowance.
And there is a £175,000
tax-free allowance per person on a main residence but only if it’s passed to
children or grandchildren.
That would raise the
threshold to around £3m before inheritance tax on farmland would kick in.
You can read more about it here.
