Agricultural Property Relief and Business Property Relief

Debate between Dan Tomlinson and Ben Goldsborough

Monday 5th January 2026 Commons Chamber

[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.

[Ben Goldsborough (South Norfolk) (Lab)]

South Norfolk is home to 400 farms, and I put on record my thanks to Will, Nick, David and Deborah, who are some of the farmers have supported me hand in glove over the past 14 months in making representations to the Minister. I welcome these changes, but the biggest threat to family farming in South Norfolk right now is biosecurity risk. I urge the Treasury to pay special attention to avian influenza and African swine fever, so that we can protect those family farms going forward.

[Dan Tomlinson]

I thank my hon. Friend for the strong representation that he has provided for his constituents since he was elected in 2024, and for raising an important issue. I am sure that DEFRA Ministers are alive to that issue and will continue to have conversations with hon. Members.

Family Farming in Northern Ireland

Debate between Dan Tomlinson and Ben Goldsborough

Tuesday 28th October 2025 Westminster Hall

[Dan Tomlinson]

I thank the hon. Lady for that intervention and hope that today we have been able to have that open and public discussion to share the different views on this policy. I would be happy to continue the discussion with her and others who think that the issue is important. Just last week, I made sure to speak to individual farmers to understand their perspectives on the policy. I will continue to engage with people who will be affected by the changes, and with Members in this place. I hope that we can continue those conversations across the aisle.

Let me make progress—I can see the time is slipping away from us. Overall, the reforms are expected to result in up to around 520 estates claiming UK agricultural property relief, including those also claiming BPR, paying more inheritance tax in 2026-27. Almost three quarters of such estates will not pay any more tax as a result of the changes, based on the data. As I have already mentioned, CenTax has looked at the Government’s figures and has reached a similar conclusion. Its work concludes that of the estates that are affected, half will see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86% of those estates could pay their entire inheritance tax bill out of non-farm assets.

[Ben Goldsborough]

I congratulate the Minister on his first appearance in Westminster Hall. My question is about that 5 percentage point change. This year has been a terrible year for yields, especially in South Norfolk with the droughts. That hits the profitability of farming, which is non-existent—there is not enough profitability in farming. Will the Minister share what investigations the Treasury has done on that fluctuation in profitability and the ability of our farmers to pay the 5 percentage point increase he mentioned?

[Dan Tomlinson]

The figures that I raised were from research carried out by an independent organisation, CenTax. Profitability and incomes change from year to year, of course, and can change for different types of farms—we can see that beef prices, for example, are higher this year than they have been in the past, and the Government are aware of that.

Overall, we understand that the reforms to inheritance tax generate strong views from Members from Northern Ireland and from all over the country, who are here to represent their constituents. I understand that, and I respect and admire the work of Members on both sides of the House in bringing their residents’ concerns to this place.

I know that the questions about inheritance and family businesses are deeply personal, and I do not pretend that such changes are not difficult, but I believe that the reforms get the balance right between supporting farms and businesses and funding our public services. They mean that assets will be taxed at a lower rate than most others, and, in this tough context, I think that the Government have made the right decision. I thank the hon. Member for Upper Bann again, as well as all the Members who have intervened today.

Question put and agreed to.