Episode overview
Ryan Lincoln returns to follow up discussions on the new Inheritance Tax rules for Farmers in what has been called the Family Farm Tax. There was no u-turn in the recent Budget so Farmers and business owners need to plan ahead urgently. James and Ryan confirm the policy and discuss the main tax planning options available and where different options may suit different families.
Episode summary
The government's 2026 inheritance tax changes are set to have a significant impact on family farms and agricultural businesses across the UK. In this episode, host James Shipp is joined by Ryan Lincoln to break down the so-called "Family Farm Tax" and explain what the confirmed changes mean for farmers, landowners and business-owning families.
With no reversal of the policy following the Budget, the discussion focuses on why succession planning has become more important than ever. James and Ryan explore the new inheritance tax rules, the potential implications for farming families, and the practical options available to help protect family assets and pass businesses on to the next generation. They also examine the pros and cons of different planning strategies, highlighting key considerations for families with varying circumstances.
Whether you're a farmer, landowner, business owner or adviser, this episode provides valuable insight into navigating the changing inheritance tax landscape and taking proactive steps before future liabilities become a problem.
Key takeaways
The 2026 inheritance tax changes could significantly increase the potential tax burden on some farming families, making early planning more important than ever.
Agricultural Property Relief (APR) and Business Relief (BR) have long played a crucial role in passing farms and agricultural businesses between generations, and understanding how the new rules affect these reliefs is essential.
Succession planning should be reviewed well before any transfer of assets takes place, rather than being left until retirement or later life.
Every farming business is different, meaning there is no one-size-fits-all solution when it comes to inheritance tax planning.
Farmers should regularly review ownership structures, partnership agreements and wills to ensure they reflect current objectives and legislation.
Lifetime gifting strategies may offer opportunities for some families, but these need careful consideration alongside the practical needs of the farm business.
Effective communication between generations can help avoid misunderstandings and ensure a smoother transition of ownership.
Inheritance tax planning should form part of a wider business strategy that considers profitability, succession, retirement and long-term sustainability.
Professional advice is increasingly valuable as farming families navigate complex tax legislation and changing government policy.
Taking action now can provide more options and greater flexibility than waiting until the new rules take effect.
Chapters
00:00 - Introduction and Autumn Budget context
00:46 - Why farmers historically held assets
02:00 - Dividing the family estate fairly
03:42 - Current vs new agricultural IHT rules
06:03 - The £1m cap and spousal transfers explained
09:12 - Other Budget considerations and reliefs
10:22 - Strategy 1: lifetime gifting and the 7-Year rule
12:00 - Trusts for asset protection
13:28 - Capital Gains Tax holdover vs uplift
16:16 - Strategy 2: holding assets until death
19:52 - Uplift on death vs future capital gains
22:35 - Strategy 3: blended gifting and retaining reliefs
24:37 - Income and reservation of benefit rules
27:00 - Impact on family trading businesses and corporates
28:20 - Summary and why you must plan before April
29:46 - Outro and wrap-up
Guest bio
Ryan Lincoln is a Chartered Tax Adviser and Partner at Lovewell Blake, specialising in inheritance tax, succession planning and tax advice for farming families, landowners and business owners. He helps clients navigate complex tax issues and plan effectively for the future.
