More farms getting valued

REQUESTS for farm valuations have significantly increased across Dumfries and Galloway as farmers take steps to mitigate Inheritance Tax (IHT) changes, a local land agency has revealed. C&D Rural’s managing director Louisa Thomson, pictured, has revealed the majority of new valuations have been linked to farmers taking precautions and planning for the future because of the threat of potentially hefty IHT bills due to new legislation coming into force in April 2026. Under the new rules, only the first £1m of qualifying agricultural and business property will receive 100 per cent relief, with any value above that threshold attracting just 50 per cent relief. This effectively introduces a 20 per cent tax rate on the excess, a change that has sparked concern across the rural community. Louisa said: “We have been inundated with farm valuations since the changes to Agricultural Property Relief and Business Property Relief was announced, and farmers are taking positive steps to make sure they are protecting their business and family from potentially devastating IHT bills. This represents a real shift in mindset from farmers who have previously been told to keep hold of their assets for as long as possible. Now, they have wisely began to review their estates, restructure ownership and succession plan to reduce its taxable value which will safeguard their family’s future. “Farming businesses are often asset rich but cash poor, and without proper planning, families could face tax bills running into hundreds of thousands of pounds, potentially forcing them to sell off land, take out loans, or even lose the farm altogether. “It’s pleasing to be working with so many clients to help them understand the value of their assets and how best to protect them. The key is to act now because waiting until the legislation has been rolled out could be too late.” She is also urging those that have not yet taken action to do so as soon as possible, adding: “The cost of doing nothing could be devastating to farming families. If they get landed with a big IHT bill on the death of a loved one, the financial pressure could force them to sell off parts of the farm, take out loans, or even sell the entire business - undermining generations of hard work and legacy. The time to take action to mitigate potential IHT bills is now. Many farmers have done so, but there’s still so many who haven’t and are putting their farming businesses – and family – at risk. “Succession planning, restructuring ownership, and exploring trusts or lifetime gifts are all strategies that can help reduce the impact of the new rules."