A growing number of farmers are looking for life-insurance products after the Government introduced changes to the inheritance tax (IHT) rules.
The revelation was made today (4 December) by life-insurance broker Reassured, who reported a sharp rise in the number of farmers enquiring about life-insurance covers.
Reassured said that Google trends show life insurance keywords relating to farmers have increased since the Budget announcement.
It reported a 43% increase in the number of enquires that cite inheritance tax as the main reason they are seeking out life-insurance cover.
The government announced IHT changes in the autumn Budget that will affect farmers who had previously been exempt from inheritance tax.
Under the new rules, which come into effect from April 2026, inherited agricultural assets worth more than £1m will be taxed at 20%.
Farmers reacted furiously to the changes and last month staged a protest in Westminster.
They argued that while they are asset rich – in terms of their land and livestock – they don’t generate much revenue and that they would have to sell up to be able to pay the tax.
However, farmers are looking at other options, including insurance and gifting, to pass on their family assets to the next generation.
Reassured chief executive officer Mark Townsend said: “Many British farmers are clearly very anxious about the financial hit they will face if the farms they inherit are taxed at 20%.
“We’ve noted a sharp rise in the number of farmers who are looking for life-insurance products as a buffer against this incoming tax rise. Life insurance can help to offset inheritance tax and our advised arm of our business can assist farmers who are looking to explore this option.”
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