Agricultural Property Relief and Business Property Relief

Aphra Brandreth Excerpts

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

I thank my hon. Friend for her question and for her strong representation of rural constituents and rural communities. She makes a very important point. It is worth noting that this is a tax relief, and the tax relief as it stood before the changes that the Government have come forward with since the 2024 Budget meant that the top 7% of claims for agricultural property relief accounted for 40% of the Exchequer cost of the relief. That meant £219 million in foregone tax revenue—revenue that, by and large, this Government will now be raising from the very largest estates to help fund our public services in a sustainable way. The Opposition were never able to do that because of their chaotic management of the economy and the public finances.

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

The Government have heard from these Benches time and again about the impact the family farm tax has had on food security and the risk to countryside stewardship and our environment and the economic viability of farms, but also, crucially, about the impact on farmers’ mental health. My question to the Minister is simple: on behalf of farmers across Chester South and Eddisbury, why did this decision take so long?

[Dan Tomlinson]

The Government wanted to ensure that the changes that we are legislating for in the Finance Bill in the coming weeks came forward before that Bill was passed. We have continued to listen to farming communities and family businesses. The changes with which we have come forward, including increasing the threshold from £1 million to £2.5 million, coupled with the changes announced in last year’s Budget, will mean that a couple can pass on up to £5 million of agricultural or business assets tax free, which we think is a fair and proportionate way to raise revenue from some of the largest estates in the country.