Succession is a growing concern facing farmers and rural landowners across Scotland. In discussions with members of our Rural – Land & Business team at recent agricultural shows they shared their views on planning, Inheritance Tax and other key issues those in the rural sector currently face.
Leanne Gordon, a Partner in the firm’s Rural - Land and Business team, says it’s only now that many family farming enterprises are getting into the detail of considering how to plan for the impact of controversial Inheritance Tax changes.
The UK Government has faced furious protests from farmers after announcing last year that they will not be able to claim full inheritance tax relief on farms worth more than £1m from April 2026. Confirmation came during the summer that a new £1 million cap will apply to combined Agricultural and Business Property Reliefs from April. This includes the removal of 100% tax relief on business assets worth more than £1m.
Leanne said: “The detail confirmed by the UK Government this summer means that it’s only now that farming families and landowners can start to consider in real detail about how they manage longer-term business planning.
“We all know that succession - and managing that - is a perennial challenge for farming families. But the changes to Inheritance Tax are making that even more complex, whether that involves making financial provisions to be able to pay Inheritance Tax, or looking at other steps to manage liability - including bringing forward the next generation taking the business over.
“It is causing genuine - and growing - concern. Some farming families are just not ready to answer questions that they are now forcing themselves to consider.
“What’s more, there’s real nervousness among many of those we’ve spoken to about what more might come in the Chancellor’s next Autumn Budget in November.”
More details about the Inheritance Tax changes were announced and discussed as Lindsays lawyers met farmers at the region’s shows.
And, while discussions with clients and contacts show that general confidence in agriculture remains strong, there is no avoiding the widespread impact of the Inheritance Tax change.
Eilidh Robertson, a Director in Lindsays’ Rural team, said: “It’s not just those who own their land who may be affected. There is a growing realisation that the tenant farmers may also be affected if the scale of their active tenancy puts them over the £1m threshold.
“With more details now available, people are starting to work through what it means for their business, their families and plans for the future. They are going to have a significant impact.
“What’s clear is that there’s no one-size-fits-all approach to managing this.
“We are not advising people to panic and rush into any changes, but to take a look at your current arrangements and what advice you might need to take the best possible steps.
“There is still a lot of detail to come from the UK Government, but getting advice on the next steps to take around structure, succession and other factors may well be a wise investment.”
The UK Government has said that a new £1 million cap will apply to combined Agricultural and Business Property Reliefs (APR & BPR) for individuals and trusts.
Assets above £1 million will receive 50% relief, resulting in an effective 20% inheritance tax charge.
Other issues raised by farmers with Lindsays lawyers at the shows include the Scottish Government’s upcoming changes to Land Reform, with more details on that expected in the months ahead. Changes to agricultural support packages and diversification opportunities were also discussed.
Published 29 September 2025.
