Specialist agricultural lawyers at Clarke Willmott LLP have reported a surge in enquiries about pre-nuptial and post-nuptial agreements from farming families, following recent government changes to inheritance tax on farm assets.
With succession planning now a pressing concern, private client and family law specialists are seeing increased demand for legal advice to safeguard farming assets, ensuring they remain within the family for future generations.
Holly Smith, an associate in Clarke Willmott’s family law team, explained that nuptial agreements can play a vital role in securing agricultural assets, including land, livestock, farming equipment, and business interests.
“Many farming families recognise the importance of protecting specific assets and ensuring they stay within the family,” she said. “A nuptial agreement can clarify ownership and outline how assets—including future inheritance and business interests—will be managed in the event of a divorce.”
Under government plans announced in October, from April 2026, agricultural and business property assets up to £1 million will continue to receive full inheritance tax relief, but anything above this threshold will be taxed at an effective rate of 20%. Farmers warn that these reforms could create severe financial challenges and even impact food production.
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