Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential implications for her policies of the findings of the report entitled Taxing Futures: The economic and fiscal implications of changes to BPR & APR for UK family businesses and farms, published by Family Business UK in June 2025.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

The analysis commissioned by Family Business UK and undertaken by CBI Economics is based on a self-selecting online survey from members of representative groups campaigning against the reforms.

The independent Office for Budget Responsibility (OBR) certified the costing at Autumn Budget 2024. The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The OBR does not expect the reforms to have a significant macroeconomic impact.