Oral Answers to Questions

David Smith Excerpts

Tuesday 4th November 2025 Commons Chamber

The Chancellor of the Exchequer was asked—

[David Smith (North Northumberland) (Lab)]

1. What assessment she has made of the potential implications for her policies of the report by CenTax entitled, “The Impact of Changes to Inheritance Tax on Farm Estates” published on 14 August 2025.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

10. If she will hold discussions with farming representatives on the potential impact of changes to agricultural property relief and business property relief on farmers.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

Ministers from Government Departments have met organisations including the National Farmers’ Union, the Tenant Farmers Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, and the NFU in Scotland and Wales. I also met farmers in the north-east of England only last month. After listening and considering the independent Centre for the Analysis of Taxation report, the Government believe that the approach we have set out is an appropriate one.

[David Smith]

I am proud to support a Government who believe in progressive taxation, as I am sure the Minister does—that those with the broadest shoulders should bear the greatest burden. Under the CenTax minimum share rule proposal, farm estates where at least 60% of the estate is used for farming would receive relief of up to £5 million per person. This would reduce the risk of family farms being broken up, place a greater burden on very large estates and those gaming the system, and double the forecast tax take. Will the Minister direct Treasury officials to take another look at the CenTax proposals on APR prior to the Budget?