Fri, 16 May 2025

Fri, 16 May 2025 MPs call for year-long delay to farm inheritance tax

A cross-party committee says farmers have lost trust in the government over its policies.
A group of MPs has recommended delaying farm inheritance tax changes by a year and suggested alternative schemes that would not harm small family businesses. The government's plans to tax inherited agricultural assets worth over £1m at 20% have been met with protests across the UK. A report by the Environment, Food and Rural Affairs (Efra) Committee criticized the lack of consultation and impact assessment on the changes. The committee warned that the reforms could affect the most vulnerable farmers and suggested a delay would give them more time to seek advice. The National Farmers' Union (NFU) has expressed concerns about the policy, with president Tom Bradshaw saying it remains "fundamentally unfit" and must be changed. The NFU estimates that up to 70,000 farms could be affected by the changes, not just the wealthiest 500 as claimed by the government. The Efra Committee also criticized the sudden closure of the Sustainable Farming Incentive (SFI) environmental payments scheme, which left many farmers at risk of becoming unviable. The committee called for lessons to be learned and a restoration of trust in the government. The Country Land and Business Association (CLA) has proposed an alternative "clawback" scheme, under which 100% agricultural and business property reliefs would remain but inheritance tax would be applied if assets are sold within a certain period post-death. The CLA president urged the government to rethink its policy and consider the proposal. The government maintains that three-quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will "pay half the inheritance tax that most people pay". Payments can be spread over 10 years interest-free.
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