Agriculture: Inheritance Tax
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, whether he has made an estimate of the number of farms affected by changes to (a) Inheritance Tax, (b) Agricultural Property Relief and (c) Business Property Relief in South Suffolk constituency.
Answered by Daniel Zeichner
Assessing the impact of the new Inheritance Tax policy, which comes into force from 6 April 2026, relies on a number of factors such as ownership structure and debt levels. Without such information, which the Government does not hold at that level, area level assessments cannot be made.
Around 500 claims for Agricultural Property Relief will be affected. Our figures are based on the latest available information from HMRC on actual claims for Agricultural Property Relief, which show that 73% of claims are expected to be unaffected by the changes: Summary of reforms to agricultural property relief and business property relief - GOV.UK
This Government is aware that each farm is different, and so we encourage farmers to speak to their tax advisors and agents to understand how these changes may impact their specific situation and how to plan for the future.
As an outcome of the recent Spending Review, we have committed £5 billion in the agricultural budget over the next two years – the biggest ever budget for sustainable food production and nature recovery in this country’s history. This enables us to keep momentum on the path to a more resilient and sustainable farming sector.
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