Experts at Johnston Carmichael have characterised the decision as an “early Christmas present” for the sector. Alex Docherty, the firm’s head of private client tax, described the policy shift as a major row-back on the reforms initially set out in the 2024 Autumn Budget. According to Ms Docherty, the move serves as a vital acknowledgement of the farming industry’s contribution to employment, land management, and food security. She further noted that the announcement aligns with the recent independent Farming Profitability Review, led by Baroness Batters, which had identified inheritance tax as the single biggest concern among farmers.

Similarly, Armstrong Watson has welcomed the changes as a relief for farming families after a period of uncertainty. David Threlkeld, head of agriculture at the firm, stated that the news would be well-received following extensive campaigning across the sector. Under the new rules, which come into effect in April 2026, couples will be able to pass on up to £5 million in qualifying assets tax-free, a change Threlkeld views as a positive step.

Despite the optimism, both firms have issued warnings regarding future liabilities. Mr Threlkeld cautioned that while the increased allowances are beneficial, many farmers and business owners could still face significant tax bills upon death. He advised that steps can still be taken before the April 2026 deadline to mitigate these changes and urged farmers to seek specialist professional advice early in the new year. Johnston Carmichael echoed this sentiment, with Ms Docherty emphasising that larger businesses with values exceeding the new £5m combined threshold must continue to plan effectively to ensure their viability.