Inheritance Tax: South Suffolk
The question
To ask the Chancellor of the Exchequer, if she will hold discussions with farmers in South Suffolk constituency on the changes to Inheritance Tax proposed in the Autumn Budget 2024.
Answered by James Murray
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean 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 compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
As the Minister responsible for the UK tax system, I have received representations on this subject from a number of Hon Members and I have participated in several debates in this House since Autumn Budget 2024. I have also met with Hon Members and several agricultural organisations to listen to their views.
The Government has been listening to the different views on this subject and continues to believe the approach we have set out is appropriate.
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