Before the Budget on 28 October 2026: time for farming families to take stock, take advice and consider action

With the Autumn Budget set for 28 October 2026, the month and a half until then gives many farming families a valuable opportunity to step back from daily operational pressures, take advice, and potentially take action to mitigate future tax bills in a known tax landscape.

While nobody can predict exactly what the Chancellor will announce, reviewing your business structure and asset ownership now can help identify risks, improve resilience and ensure your farming business is better prepared for any future tax changes.

In our experience, many farming businesses operate and own farm assets today under arrangements that made perfect sense a decade ago but may no longer best serve the family or business following the inheritance tax changes that came into effect on 6 April 2026. With speculation rife around future tax policy and in particular possible changes to Capital Gains Tax rules, now is a sensible time to take stock rather than waiting for Budget day.

What action should farming families consider before the Budget?

The starting point is getting in touch with your accountant and asking them to calculate your current inheritance tax bill on your death based on the current open market value of all assets in your estate. If that takes you over the £2.5 million inheritance tax-free threshold (or £5 million if you are married), then your accountant may recommend that you gift some of this away, either to a spouse or to the next generation. That is provided you can afford to give these assets away, as you cannot then continue to take a benefit from them. Otherwise, the gift will fail in the eyes of HMRC and fall back into your estate for tax purposes.

There are several other considerations when making a lifetime gift, as covered in our previous article: Passing on the farm: Potential pitfalls of lifetime gifting and the seven-year rule.

If the accountant does recommend lifetime gifting before 28 October 2026, we can action this swiftly for our clients. This could be at a Land Registry level if the land or property is not charged to a bank. The transfer would be effective for tax purposes when dated, though it would still need to be registered at the Land Registry to be binding. The gift could also be achieved by what is known as an “equitable assignment”, which deals with the right to the monetary value in the land on a sale. This would also be effective from the date of the agreement and would not require subsequent registration to be binding, though you would need to advise your bank of the change as a matter of priority if the land is charged.

We can also update the partnership documents to bring in the recipient of the land first, if they are not already a partner, so it is a transfer between partners for tax purposes, and update the partner profit and loss percentages to avoid any gift with a reservation of benefit as mentioned above. Finally, we can document that the property, in its new ownership, is partnership property, where appropriate, to ensure the evidence trail is in place to maximise entitlement to the 20% rather than 40% rate of inheritance tax above the tax-free threshold going forward.

Looking beyond the Budget

The conversation should not stop at tax. The strongest farm business structures are usually built around broader objectives: protecting family relationships, supporting business growth, facilitating succession and creating resilience for future generations.

The Budget may well bring new developments, but successful farming businesses thrive not because they react to one fiscal event, but because they plan ahead.

How Ashtons can help to navigate these challenges

At Ashtons, our specialist Agriculture and Estates team works closely with clients’ accountants, who provide the tax advice, to consider what is best for the family and put in place the succession planning steps recommended by the accountant. We offer a fixed-fee initial review, after which we can map your plan of action.

Contact our Agricultural Law solicitors today

If you need legal assistance for your agricultural business, please contact a member of our Agriculture and Estates team or complete this online enquiry form, and we will be happy to assist you.