UK MPs Call on Government to Delay Agricultural Inheritance Tax Reforms Until 2027

The cross-party Environment, Food and Rural Affairs Committee has called on the UK government to delay the implementation of its agricultural property relief (APR) and business property relief (BPR) inheritance tax reforms until October 2026, with changes coming into effect in April 2027. The committee criticized the government for announcing these reforms without adequate consultation, impact assessments, or affordability evaluations, leaving the potential effects on family farms, land values, tenant farmers, and food security unclear and disputed. The reforms, which include a new 20% inheritance tax on agricultural assets valued over £1 million, have sparked significant backlash from farmers, including mass protests and concerns over mental health impacts within the farming community. MPs emphasized that the delay would allow for better tax policy formulation, provide vulnerable farmers more time to seek professional advice, and help the government present a more positive long-term vision for farming. While supporting the government's goal to close tax loopholes exploited by wealthy investors, the committee urged consideration of alternative reforms to avoid harming small family farms and the most vulnerable farmers, particularly those with less profitable or tenanted holdings. The committee's report highlighted a sharp decline in farmer optimism and increased mental health concerns following the Autumn Budget 2024 announcements, underscoring the reforms' contentious impact on the agricultural sector.