Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Oral Statement of 30 October 2024 on Financial Statement and Budget Report, Official Report, column 819, what the evidential basis is for the estimate that 75% of family farms will not be affected by the changes to agricultural property relief.

Answered by James Murray - Exchequer Secretary (HM Treasury)

The Government has published information about reforms to agricultural property relief at: https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.

Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) in 2026-27 are expected to be unaffected by these reforms.

Historic data published by HMRC shows that in 2021-22, 73% of estates making agricultural property relief claims did so on total amounts worth less than £1m.

HMRC is commissioned by the Office for Budget Responsibility (OBR) at each fiscal event to produce Inheritance Tax receipts forecasts. More information behind this process is published on the OBR website: https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/.

HMRC analysis suggests that in 2026-27, 500 estates claiming agricultural property relief will receive a lower financial benefit as a result of the Government’s reforms, out of a projected total of 1,800 estates making agricultural property relief claims in that year. This means that around three-quarters of estates making agricultural property relief claims will be unaffected by this measure.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to paragraph 2.51 of the Autumn Budget 2024, on what evidential basis she reduced Agricultural Property Relief on combined agricultural and business assets valued over £1 million.

Answered by James Murray - Exchequer Secretary (HM Treasury)

The Government has published information about reforms to agricultural property relief at: https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.

Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) in 2026-27 are expected to be unaffected by these reforms.

Historic data published by HMRC shows that in 2021-22, 73% of estates making agricultural property relief claims did so on total amounts worth less than £1m.

HMRC is commissioned by the Office for Budget Responsibility (OBR) at each fiscal event to produce Inheritance Tax receipts forecasts. More information behind this process is published on the OBR website: https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/.

HMRC analysis suggests that in 2026-27, 500 estates claiming agricultural property relief will receive a lower financial benefit as a result of the Government’s reforms, out of a projected total of 1,800 estates making agricultural property relief claims in that year. This means that around three-quarters of estates making agricultural property relief claims will be unaffected by this measure.