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flag UK raises inheritance tax threshold for farmers to £2.5M, easing family farm burdens.

flag In early 2026, Cambridgeshire farmers gained relief as the UK government raised the inheritance tax threshold from £1 million to £2.5 million, a victory driven by sustained lobbying from the National Farmers Union (NFU). flag The change aims to prevent family farms from facing unmanageable tax burdens that could lead to closures. flag Despite this progress, challenges persist, including extreme weather, rural crime, animal diseases, water security, supply chain fairness, and a shortage of local abattoirs. flag The NFU continues advocating for clarity on the Sustainable Farming Incentive and supports a government-backed Farm Profitability Review, which delivered 57 recommendations on investment, planning, and supply chain reform. flag The sector remains cautious, with low confidence despite contributing £1.4 billion to the East Anglian economy and supporting thousands of jobs.

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