Inheritance Tax is a tax on the estate of someone who has died, including all property, possessions, and money. The standard Inheritance Tax rate is 40 per cent. It is only charged on the part of your estate that is above the tax-free threshold, which is currently £325,000. The tax free element is known as the nil rate band.
I am aware that, at Autumn Budget, the Chancellor set out plans to bring unused pension funds and death benefits from a pension into a person's estate and alter Agricultural Property Relief and Business Property Relief.
I am deeply concerned about the impact of these reforms, particularly on farms. Many farms would simply not survive the imposition of Inheritance Tax. Families who have farmed the land for generations could be forced to give up their businesses and their homes, jeopardising the sustainability of the rural economy and food security.
I will closely monitor any further changes to the tax regime.
