National Farmers’ Union (NFU) Scotland has welcomed the UK Government’s announcement to raise the threshold for Agricultural and Business Property Relief (APR/BPR) under inheritance tax from £1 million to £2.5 million per individual, allowing a potential £5 million exemption for couples, but says there is more still to do.
NFU Scotland president Andrew Connon and the Union’s policy team met with Defra Minister Angela Eagle MP and a number of Scottish MPs, underlining the “urgent need” for long-term stability, food security, and a profitable future for Scottish farmers and crofters.
The latest meetings build on 14 months of campaigning by NFU Scotland, alongside the other UK farming unions. The Union has led extensive lobbying across Scotland and Westminster, including direct engagement with MPs and Ministers, formal submissions to Treasury consultations and coordinated grassroots action by members.
NFU Scotland said that while the increase in the APR/BPR threshold is a “significant and hard-won step forward”, it has made clear that further change is still needed. The Union remains concerned that the revised cap continues to penalise family farms with more complex or non-spousal ownership structures, as well as larger farming businesses that are asset-rich but cash-poor.
The Union remains concerned about the inclusion of the anti-forestalling clause, which it said creates “serious moral and practical challenges” for farmers planning succession. While the increased threshold helps mitigate some immediate impacts, the clause is expected to remain in the current Finance Bill and continues to raise concerns about fairness and workability.
In line with other UK unions, NFU Scotland has confirmed that political engagement on inheritance tax will continue, with a renewed focus on securing a full reversal through party manifestos and policy commitments ahead of the next General Election.
NFU Scotland president Andrew Connon said: “The decision to raise the relief threshold reflects the strength of feeling across the industry and the influence of a united farming voice. It is a positive and important development, but it is not a complete solution.
“Many family farms remain exposed under the new threshold, particularly those with non-traditional ownership structures. And the anti-forestalling clause remains a serious concern for those trying to plan responsibly for the future.
“We are committed to working constructively with all political parties to ensure inheritance tax policy supports the long-term viability of Scottish agriculture and allows family farms to pass on their legacy to the next generation.”
NFU Scotland has reaffirmed its commitment to ensuring that taxation policy does not act as a barrier to succession, business continuity or investment. As part of its broader policy programme, the Union said it will continue to engage with UK farming unions, legal and tax experts and parliamentarians to advocate for a “fairer, more sustainable future” for rural Scotland.
