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PARLIAMENTARY WRITTEN QUESTION
(18 November 2024)

Question Asked

To ask the Chancellor of the Exchequer, what definition of farm her Department used to estimate the number of farms affected by changes to agricultural property relief.

Asked by:
Ben Obese-Jecty (Conservative)

Answer

From 6 April 2026, the full 100% relief from inheritance tax will be restricted to the first £1 million of combined agricultural and business property. Around 500 estates across the UK are expected to be affected each year from 2026-27. It is not possible to accurately infer a future inheritance tax liability from data on farm asset values. The number of claims, meaning how many people would be impacted by this change, is affected by many things such as: who owns the business; the nature of that ownership; how many owners there are; and how they plan their affairs.

The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms, and further explanatory information at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.


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