Agriculture: Inheritance Tax
The question
To ask the Chancellor of the Exchequer, if she will make an assessment with the Chancellor of the Exchequer of the potential merits of implementing a tapered clawback mechanism for agricultural property relief for farmers whose agricultural assets marginally exceed the £1 million threshold.
Answered by James Murray
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 gets the balance right between supporting farms and fixing the public finances in a fair way. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but it still means those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and the position before 1992.
The Government has no plans to implement a tapered clawback mechanism.
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