Agricultural Property Relief and Business Property Relief

Bradley Thomas Excerpts

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

We have come forward with a change to this policy after listening to farmers and farming communities and to the representations that have been made. We think that this is the right change. We will have the chance to debate it again when we consider the Finance (No. 2) Bill in Committee of the whole House next week, when the amendment that has been tabled will be voted on. In the end, Opposition Members who wish for the Government not to go ahead with this change at all should come forward with ideas for how they would raise £300 million from those who have the very largest estates in this country. We think it is right to raise revenue from those with the very broadest shoulders, and that is what this change will allow us to do.

[Bradley Thomas (Bromsgrove) (Con)]

After months of sleepless nights, fear and uncertainty, this partial U-turn is a victory for farmers—I pay tribute to farmers across the country, but particularly those in my constituency of Bromsgrove and the villages. Despite the U-turn, this policy should still be scrapped. What can the Minister say to farmers regarding incentives? Where is the incentive for a farm to invest in very expensive capital equipment if it may tip them over the threshold of liability for the family farm tax?

[Dan Tomlinson]

Just to be clear, this policy applies only to the farming or business estates worth more than £2.5 million, or £5 million if owned by a couple. There are still significant incentives to grow and invest in people’s businesses. This tax rate is half the rate for everyone else paying inheritance tax, if they have sufficient assets to get over the threshold. I think that is worth noting. Only around the very largest 10% of estates in the country pay any inheritance tax at all.