MPs Demand Delay to “Damaging” Farm Tax Reforms
MPs Urge Government to Delay “Damaging” Farm Inheritance Tax Reforms
A cross-party committee of MPs has called on the Government to urgently delay its planned reforms to agricultural property relief (APR) and business property relief (BPR) until April 2027.
The Environment, Food and Rural Affairs (EFRA) Committee argues a pause until October 2026 for the final announcement would allow for better policy and provide a long-term vision for farming, also giving vulnerable farmers more time for advice.
MPs criticised the lack of consultation and impact assessment for changes announced in the Autumn Budget 2024, warning of “disputed and unclear” consequences for family farms, land values, and food security. A survey revealed farmer optimism plummeted from 70% to 12% post-budget, with 84% reporting mental health impacts linked to inheritance tax relief changes and the SFI closure.
While supporting the aim to close tax loopholes for wealthy investors, the Committee urged consultation on alternative reforms that wouldn’t harm small family farms. They also criticised the “sudden closure” of the SFI, demanding an alternative funding mechanism by September 2025 and clarity on its future.
The report also called for the urgent publication of the 25-year Farming Roadmap and criticised Defra’s “poor communication” and “breach of trust” with farmers.
EFRA Committee Chair Alistair Carmichael MP emphasised the negative impact of recent government actions on farmer confidence and wellbeing, urging a delay to the inheritance tax reforms to rebuild trust and provide the clarity the sector urgently needs.
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