Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what affordability criteria were used by the Treasury when assessing the ability of farm businesses to pay the new inheritance tax charges within 10 years of death of the owner of a family farm of sufficient value to incur those charges.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.
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, fixing the public finances, and funding public services. 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.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.
A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what assessment the Department for Environment, Food and Rural Affairs made of the impact of reducing inheritance tax relief on agricultural and business property on farmer suicide rates before taking the decision to do so.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.
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, fixing the public finances, and funding public services. 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.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.
A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what assessment His Majesty's Treasury made of the impact of reducing inheritance tax relief on agricultural and business property on farmer suicide rates before taking the decision to do so.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.
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, fixing the public finances, and funding public services. 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.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.
A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what assessment the Department for Environment, Food and Rural Affairs made of the impact of reducing inheritance tax relief on agricultural and business property on farmers' mental health before taking the decision to do so.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.
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, fixing the public finances, and funding public services. 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.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.
A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what assessment His Majesty's Treasury made of the impact of reducing inheritance tax relief on agricultural and business property on farmers' mental health before taking the decision to do so.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government encourages anyone who is concerned about their own mental health, or the mental health of those around them, to seek support. The Government takes mental health support for farmers very seriously. For example, Defra supports farming welfare organisations through funding the Farmer Welfare Grant. The fund supports projects in England designed to offer tailored support to farmers and their families, including preventing cases of poor mental health within farming communities, and to deliver a range of essential services, including one-to-one support.
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, fixing the public finances, and funding public services. 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.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
The Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. 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.
A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government what assessment they have made of how UK farmers will replace the lost market for feed quality cereals when the UK imports bioethanol from the United States of America.
Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The landmark economic deal with the United States announced on 8 May protects jobs in the automotive, steel, aluminium, pharmaceutical and aerospace sectors - sectors that employ over 320,000 people across the UK. For the first time ever, this deal will also open up exclusive access for UK beef farmers to the US market.
The demand for UK-produced crops is subject to global market prices and supply. Crop varieties grown in the UK can be of a specification for food, feed and bioenergy standards, and this in-built flexibility helps farmers to ensure an end-use market for their product. For farmers, the opportunity to sell into bioenergy production offers a secondary market for their surplus or lower quality crops and associated agricultural residues. In 2023, 133,000 hectares of agricultural land in the UK were used to grow crops for bioenergy. This area represents 2.2% of the arable land in the UK.
The Government is working closely with the Ethanol industry to find a way forward. The Business and Transport Secretaries met with representatives from the bioethanol industry last week to discuss their concerns.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what ability landlords will have to comply with tied agricultural dwelling planning conditions when an agricultural employee leaves the industry but chooses to remain in their tied agricultural occupancy property under the provisions of the Renters' Rights Bill.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
The Renters’ Rights Bill will transform how tenancies work ending the threat of arbitrary section 21 evictions. The new tenancy system will provide tenants with greater security and stability.
We value the contribution made by responsible landlords and believe they must enjoy robust grounds for possession where there is good reason to take their property back. The Bill clarifies and expands grounds for possession, allowing landlords to regain possession when necessary.
A landlord will be able to seek possession of an agricultural dwelling using ground 5A when the duties of the agricultural employee end. This will enable the landlord to re-let the property to a new tenant in compliance with the planning conditions associated with the property.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they made of the impact of the US–UK Economic Prosperity Deal on UK farmers before it was signed.
Answered by Baroness Gustafsson
On 8 May, we concluded a landmark economic deal with the US. For the first time ever, this deal will open up exclusive access for UK beef farmers to the US market. This is a major opportunity for British farmers to sell their high-quality British beef to a market of over 300 million people, helping farmers grow their business.
We are engaging extensively with the agricultural and food sectors and will always put the UK’s national interest first.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the Department for Business and Trade:
To ask His Majesty's Government on what date they informed bioethanol companies of the details of the preferential terms for US bioethanol to be sold into the UK market under the US–UK Economic Prosperity Deal. [I]
Answered by Baroness Gustafsson
Representatives from the Department for Business and Trade have been engaging with bioethanol companies regularly, including on 8 May, when the US–UK Economic Prosperity Deal was signed. Both the Business Secretary and senior officials from the department have met members of the bioethanol sector to listen to their concerns, with further engagement to take place. We are committed to engaging with the sector during this critical period.
Asked by: Lord Roborough (Conservative - Excepted Hereditary)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether they consulted the bioethanol industry before the US–UK Economic Prosperity Deal was signed. [I]
Answered by Baroness Gustafsson
Representatives from the Department for Business and Trade have been engaging with bioethanol companies regularly, including on 8 May, when the US–UK Economic Prosperity Deal was signed. Both the Business Secretary and senior officials from the department have met members of the bioethanol sector to listen to their concerns, with further engagement to take place. We are committed to engaging with the sector during this critical period.