IFS reports fewer than 500 farms to face inheritance tax changes annually

The Institute for Fiscal Studies (IFS) reports that fewer than 500 farms annually will be affected by new inheritance tax reforms. They suggest that simple tax planning can help many farms avoid the tax threshold. The government plans to impose a 20% inheritance tax on agricultural properties valued over £1 million, starting in 2026. The IFS supports the reforms but recommends adjustments for elderly farm owners to allow tax-free transfers. The National Farmers Union disagrees with the government's estimates, expressing concern that combining tax reliefs will increase the number of farms subject to the tax. The Liberal Democrats criticize the government's approach, calling for a reconsideration of the tax plans.