The inheritance tax threshold for farms has been raised to £2.5m per spouse following a sustained campaign by NFU Scotland and other UK farming unions, with the change confirmed earlier this week.
The move, announced on 23 December, increases the threshold from £1m and is being described as a significant relief for family farms across Scotland heading into the New Year.
NFU Scotland President Andrew Connon said the decision marked a turning point after 14 months of intensive lobbying.
“Today’s announcement is a significant day for the future of Scottish agriculture.
“The changes set out by the UK Government are a victory for common sense and reflect 14 months of relentless lobbying from NFU Scotland and the other UK Farming Unions.”
The revised threshold applies to Agricultural Property Relief and Business Property Relief, areas that had caused deep concern within the farming community after proposals in last year’s budget.
Farmers warned at the time that the original plans posed one of the biggest generational risks to the viability of family farms, domestic food production, and the wider rural economy.
While tax liabilities will still apply in some cases, NFU Scotland said the higher threshold will significantly reduce the burden on many working farms and provide reassurance to farming families.
Andrew Connon said the announcement would be a welcome relief across the countryside.
“This will greatly reduce the tax burden for many family farms, those working people of the countryside.
“The last 14 months have been emotional and draining for many people, but today’s announcement will be cause for small celebration across the farming industry in Scotland.”
NFU Scotland said the outcome reflected the collective effort of thousands of members who took part in lobbying, rallies, and public engagement to highlight the impact of the proposals.
The union also thanked politicians who supported the campaign, with particular praise for Alistair Carmichael, Chair of the EFRA Committee, for his role throughout the process.
NFU Scotland said challenges remain for farmers and crofters, but the revised inheritance tax threshold has strengthened confidence in the future of Scottish agriculture.
The union said it will continue to engage with government as further reforms affecting rural and farming communities are developed.
