Inheritance tax delay calls made

MINISTERS have been urged by a cross-party parliamentary group to delay reforms to farming inheritance tax until 2027 over concerns that the changes threaten to hit “the most vulnerable”.

- 

The Commons Environment, Food and Rural Affairs Committee (Efra), which includes seven Labour MPs, said the Government had failed to properly consult on the policy, leaving its potential impact “disputed and unclear”.

From April 2026, a 20% inheritance tax rate will be levied on agricultural assets worth more than £1m, which were previously exempt. This is half the usual rate of 40%.

In a report published yesterday, Efra called on the Government to push back announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027.

The group of MPs suggested that doing so would “allow for better formulation of tax policy” and protect “vulnerable farmers” who would have more time to seek professional advice.

It criticised the Department for Environment, Food and Rural Affairs (Defra) for “poor communication and last-minute decision-making following rumours and departmental leaks’.