MPs Urge Government to Delay Inheritance Tax Reforms Amid Farming Sector Concerns
A cross-party group of MPs is urging the government to postpone its planned inheritance tax reforms, fearing the changes could severely impact family farms and further erode trust in the agricultural sector.
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The Environment, Food and Rural Affairs (EFRA) Committee, in a report published on May 16th, is specifically calling for ministers to delay final decisions on reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) until October 2026. This delay, MPs argue, would provide vulnerable farmers with crucial time to seek expert advice and prepare for the potential changes.
The committee expressed concern over the lack of consultation surrounding the reforms and the absence of a clear impact assessment. This, they state, raises worries about a potentially detrimental agenda concerning land and assets within the farming community. The report highlights that the potential consequences for land values, tenant farmers, and the broader agricultural sector remain "disputed and unclear."
Furthermore, the report criticises the abrupt closure of sustainable farming incentives in March 2025, which it argues has damaged trust in the government and left many farmers without anticipated funding. This compounds existing anxieties regarding the government's commitment to the agricultural industry.
The MPs emphasise the importance of clarity, certainty, and advance notice for farmers when it comes to policy changes. They argue that the recent changes to inheritance tax relief, the abrupt cessation of the Capital Grants scheme, and the termination of farming incentive schemes have fostered a sense of insecurity and a lack of confidence in the government's pledges.
The report also acknowledges the widespread farmer protests that have taken place, highlighting the strength of feeling and sense of being ignored by the government.
The recommendations now await a formal response from the government, leaving the farming community anxiously anticipating the next steps.
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The Environment, Food and Rural Affairs (EFRA) Committee, in a report published on May 16th, is specifically calling for ministers to delay final decisions on reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) until October 2026. This delay, MPs argue, would provide vulnerable farmers with crucial time to seek expert advice and prepare for the potential changes.
The committee expressed concern over the lack of consultation surrounding the reforms and the absence of a clear impact assessment. This, they state, raises worries about a potentially detrimental agenda concerning land and assets within the farming community. The report highlights that the potential consequences for land values, tenant farmers, and the broader agricultural sector remain "disputed and unclear."
Furthermore, the report criticises the abrupt closure of sustainable farming incentives in March 2025, which it argues has damaged trust in the government and left many farmers without anticipated funding. This compounds existing anxieties regarding the government's commitment to the agricultural industry.
The MPs emphasise the importance of clarity, certainty, and advance notice for farmers when it comes to policy changes. They argue that the recent changes to inheritance tax relief, the abrupt cessation of the Capital Grants scheme, and the termination of farming incentive schemes have fostered a sense of insecurity and a lack of confidence in the government's pledges.
The report also acknowledges the widespread farmer protests that have taken place, highlighting the strength of feeling and sense of being ignored by the government.
The recommendations now await a formal response from the government, leaving the farming community anxiously anticipating the next steps.
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