MPs debate inheritance tax changes affecting family farms

Farmers are set to return to Westminster as the Finance Bill comes before MPs for its second reading, renewing pressure on the government over proposed changes to inheritance tax reliefs for agriculture. The NFU has briefed MPs ahead of the debate and is urging them to continue highlighting concerns, although it does not expect a further parliamentary rebellion at this stage.

“Across the country, family businesses have been reducing their investment, at an enormous cost to the economy and the British public,” said CLA president Gavin Lane.

He added: “It is not too late for the chancellor to scrap the entire policy, and finally recognise the enormous value family-owned businesses bring to the UK.”

Meanwhile, the Tenant Farmers Association (TFA) continues to warn that the proposals could have serious unintended consequences for the tenanted sector, which accounts for around 30% of farmland in England and Wales. “It fears landlords may respond by shortening leases, withdrawing land from the rental market, or cutting investment,” officials said.

Although the government has confirmed that the new £1 million APR/BPR threshold can be transferred between spouses and civil partners, farming organisations maintain that this adjustment does not fully address the risks facing family farms. Concerns remain over the potential long-term impacts on investment, succession planning, and the stability of rural businesses.

With Parliament due to break for Christmas on Thursday (December 19), farmers warn that the window to make their voices heard is closing fast.

Industry groups are encouraging landowners to contact their MPs, emphasising the real-world effects of the proposals on livelihoods and the agricultural sector, ahead of the detailed scrutiny that will follow in the New Year.