Rod Cordingley, Partner at StephensonsRural, looks at the surprise rise in the proposed Inheritance Tax threshold and why it could change the conversation around farm succession and estate planning.
Today served up the most unexpected Christmas cracker.
The planned threshold for Inheritance Tax (IHT) has been dramatically increased from £1 million per person, to £2.5 million which will make this year's Christmas pudding much tastier!
For couples in farming, the joint allowance doubles up to £5 million and gives a more substantial platform from which to build an estate planning strategy.
Environment Secretary Emma Reynolds said: "We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms. We are increasing the individual threshold from £1m to £2.5m which means couples with estates of up to £5m will now pay no inheritance tax on their estates."
Strange that the announcement came through Environment Secretary Emma Reynolds and not from the architect of this misguided tax. Maybe Ms Reeves was outvoted, which would be a start!