Rebecca Smith MP for South West Devon has welcomed the Government’s announcement that Labour’s planned inheritance tax changes for family farms have been watered down.

Speaking following the announcement Miss. Smith said:

“Since the moment Labour came into office, farmers have been under attack.

“The Family Farm Tax threatened to hit generational farms with hefty bills just for passing the business on to their children.

“Today’s announcement shows that, under pressure to save their own backs, Labour have finally buckled and raised the threshold.”

The announcement today means that the threshold for tax-free transfer of farm land and business assets raised from £1 million to £2.5 million per estate, effective from April 2026.

“As this allowance can be transferred between spouses or civil partners, family farms can now generally pass on up to about £5 million in qualifying assets before inheritance tax applies.

Miss. Smith continued:

“Raising the tax-free threshold to £2.5 million is a relief for families here in South West Devon, but it should never have come to this.

“Hard-working farmers should never have been treated as easy political targets.

“Labour’s original plan would have forced many to sell land or break up their farms just to meet tax bills.

“This U-turn only happened because farmers refused to stay silent and Conservatives refused to back down.

“I will keep standing up for South West Devon’s farmers and rural communities. They deserve certainty, respect and a government that understands the value of our countryside.

“There is more to be done, and the Conservatives will keep pushing this Labour Government to scrap the family farm tax altogether.”

Rebecca Smith is a British Conservative Party politician who has served as Member of Parliament for South West Devon since 2024.

She also has served as a councillor on Plymouth City Council since 2018, representing the Plymstock Radford ward.