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yesterday

MPs Urge Delay of Farm Inheritance Tax Reforms Over Impact Concerns

The EFRA Committee recommends postponing the April 2026 implementation to 2027, citing risks to family farms and food security.

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Tractors lined up in Westminster as farmers protested inheritance tax reforms that MPs now say should be delayed
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Overview

  • The cross-party EFRA Committee has formally called for a one-year delay to the planned inheritance tax reforms for agricultural assets, pushing implementation from April 2026 to April 2027.
  • The proposed reforms, announced in October 2024 by Chancellor Rachel Reeves, would impose a 20% tax on agricultural property valued over £1 million, ending long-standing exemptions.
  • MPs criticized the lack of consultation, impact assessments, and clarity on how the changes might affect land values, tenant farmers, and food security.
  • Large-scale farmer protests and surveys indicate widespread distress, with 84% of farmers reporting negative mental health impacts and fears of forced land sales to meet tax obligations.
  • The committee supports closing loopholes exploited by wealthy investors but urges the government to consider alternative measures, such as raising tax-free caps or implementing clawback mechanisms.