Summary
A group of MPs is urging a delay in changes to farm inheritance taxes set to start in April 2026. They are concerned the tax could harm small family businesses without proper alternatives and consultation.
Key Facts
- MPs want a delay for one year on the planned farm inheritance tax changes.
- The new policy plans to tax inherited farm assets over £1 million at a 20% rate.
- Protests occurred across the UK in response to the tax changes announced in the Autumn Budget.
- The Environment, Food and Rural Affairs (Efra) Committee criticized the lack of consultation and impact assessments.
- The government assures that only the wealthiest farms will be impacted, affecting about 500 farms yearly.
- The National Farmers' Union and other associations argue that up to 70,000 farms could feel the impact.
- The sudden closure of the Sustainable Farming Incentive program also shook farmers' trust in the government.
- The government claims that most estates will pay no inheritance tax, and those affected can spread payments over ten years without interest.
