Rural lawyer issues ‘think carefully’ call amid inheritance tax furore

​Specialist Rural - Land & Business lawyers at independent Scottish legal firm Lindsays have been advising clients, including those in the Scottish Borders, in the wake of the controversial UK Budget announcement.

With debate over the so-called “family farm tax” intensifying - including the mass farmers’ march on Westminster - they are urging those potentially affected by change not to make any alterations to their enterprise without careful consideration.

And, owing to the nature of the changes, they advise that any moves would be best considered as part of a full review of their personal legal and financial affairs.

The new £1m threshold for Agricultural Property Relief and Business Property Relief announced by the Chancellor means that agricultural and business property assets worth more than this will be liable to Inheritance Tax at an effective rate of 20% from April 2026.

Lindsays Partner Leanne Gordon, who advises farmers and landowners across Scotland, said: “There’s understandable concern around the future of family farms in particular. Amid the furore surrounding the announcement on Inheritance Tax, the temptation for those whose families may be affected by the change is to act fast.

“The decisions that need to be made will fundamentally affect families and businesses and therefore careful thought and consideration should be given before any actions are taken. It is important not to rush.”

“Every farming and land enterprise is unique, as is every family situation. There will not be a one-size-fits-all course of action to take.”

Lindsays has a large rural client base supported by its specialist team, including those who work with Borders clients from their Edinburgh office, as well as those which deal with family law and personal affairs, such as Wills.

First Minister John Swinney highlighted his concerns about the UK Government’s planned changes to Inheritance Tax when he spoke at the AgriScot event in Edinburgh.

At that same event, he faced calls from NFU Scotland to guarantee dedicated multi-year funding for agriculture in the Scottish Government Budget on December 4.

That comes on the back of the second major UK Budget change for Scottish agriculture - the removal of ring-fenced money for the industry, with that cash instead being part of the block grant given by Westminster to Holyrood.

Mrs Gordon said: “Set against the backdrop of changes which are coming to support programmes for agriculture in any case - there is a huge amount for families and businesses in the rural sector to consider.

“It will take time and detail that we do not have yet in order to do that properly. On so many fronts, we need to be able to understand the practical impact of policies to help advise people about how to navigate the legal complexities surrounding them.

“We would advise against rushed reactions around selling land or transferring ownership without considering all the circumstances and consequences of any changes.”