Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the implications of their policy of inheritance taxation for agricultural land on (1) family farms in Northern Ireland, and (2) the United Kingdom's food security.

The 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.

Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that the reforms are expected to result in up to around 520 estates across the UK claiming agricultural property relief paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.

The Government’s decisions at Autumn Budget 2024 provided £5 billion over two years for farming and land management in England, which will restore stability and confidence in the sector, strengthening food security alongside nature’s recovery. This is the largest ever budget directed at sustainable food production and nature’s recovery in our country’s history.