Budget 2025: CLA secures concession on IHT reform - the £1m allowance can now be transferred between spouses
Reaction and expert analysis to announcements in Chancellor Rachel Reeves' budget - find out how will updates will impact your rural business
This article will be continuously updated with news and analysis for rural businesses and land managers.
The CLA has been lobbying extensively against the UK Government's inheritance tax reforms since they were first announced by Rachel Reeves in 2024.
Whilst the CLA continues to fight this deeply damaging policy in full, it has been working with Treasury and Defra officials in the run up to the Budget to explore what concessions Government might be willing to make.
Now, in her 2025 Budget, Rachel Reeves has listened to the CLA, announcing that the £1m allowance before inheritance tax is to be paid can now be transferred between spouses, effectively doubling the allowance for married couples.
In response, CLA President Gavin Lane said:
"This concession is the first public signal that the Chancellor knows her inheritance tax reforms have been a disaster."
"Across the country, family businesses have been reducing their investment, at an enormous cost to the economy and the British public. It is not too late for her to scrap the entire policy, and finally recognise the enormous value family owned businesses bring to the UK."
The Chancellor said this was a Budget for sustainable long term growth. But it is difficult to understand what measures contained within it were designed for that purpose. Government policy continues to disincentivise investment and the country is paying the price.
Stay tuned - more CLA analysis of the 2025 Budget will be published shortly.
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