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 many decades ago but may no longer best serve the family or business following the inheritance tax changes that came into effect on 6th 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 that fall into your estate. If that takes you over the £2.5 million inheritance tax-free threshold for qualifying assets (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, though it will still be effective at law.

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 28th October, we can action this swiftly for farmers. We have various mechanisms currently available, and we also have a new fixed-fee review service to help new clients plan while controlling legal fees.

Looking beyond the Budget

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

Food production may not be the way forward to generate future income, and younger generations may be able to support older generations with new ventures as traditional farm incomes dwindle.

How Ashtons can help to navigate these challenges

At Ashtons, our specialist Agriculture and Estates team works closely with clients’ accountants, who provide tax advice, to determine what is best for the family and put in place the succession planning steps recommended by the accountant. As mentioned above, 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.