Asked by: Victoria Atkins (Conservative - Louth and Horncastle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 November 2024 to Question 12741 on Business: Inheritance Tax, how many and what proportion of the estates that claimed both agricultural property relief and business property relief (a) were family farms and (b) would have paid inheritance tax under the changes made at the Autumn Budget 2024.
Answered by James Murray - Exchequer Secretary (HM Treasury)
When estates include a claim for both APR and BPR, the estate may not consist entirely of a farming business and its working capital. HMRC estimates that of the population of estates that claimed both APR and BPR in 2021-22, almost a quarter included a BPR claim for shares on the Alternative Investment Market (AIM). It is likely that those particular assets contained within those estates represent, at least in part, investment portfolios set up in order to minimise inheritance tax liabilities, rather than being comprised solely of farming businesses. It is also possible that any claim for BPR is for a business unconnected to any farming activities.
More information is available in the Chancellor's recent letter to the Chair of the Treasury Select Committee: https://committees.parliament.uk/publications/45691/documents/226235/default/.
Asked by: Victoria Atkins (Conservative - Louth and Horncastle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 November 2024 to Question 12741 on Business: Inheritance Tax, how many and what proportion of the estates that claimed both agricultural property relief and business property relief were (a) working farms and (b) other claimants.
Answered by James Murray - Exchequer Secretary (HM Treasury)
When estates include a claim for both APR and BPR, the estate may not consist entirely of a farming business and its working capital. HMRC estimates that of the population of estates that claimed both APR and BPR in 2021-22, almost a quarter included a BPR claim for shares on the Alternative Investment Market (AIM). It is likely that those particular assets contained within those estates represent, at least in part, investment portfolios set up in order to minimise inheritance tax liabilities, rather than being comprised solely of farming businesses. It is also possible that any claim for BPR is for a business unconnected to any farming activities.
Asked by: Victoria Atkins (Conservative - Louth and Horncastle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 November 2024 to Question 12741 on Business: Inheritance Tax, what the combined value of assets qualifying for relief was in the estates that claimed both agricultural property relief and business property relief.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In 2021-22, the total combined value of agricultural and business property relief (APR, BPR) from those estates that claimed both reliefs was £1.6 billion.
When estates include a claim for both APR and BPR, the estate may not consist entirely of a farming business and its working capital. HMRC estimates that of the population of estates that claimed both APR and BPR in 2021-22, almost a quarter included a BPR claim for shares on the Alternative Investment Market (AIM). It is likely that those particular assets contained within those estates represent, at least in part, investment portfolios set up in order to minimise inheritance tax liabilities, rather than being comprised solely of farming businesses. It is also possible that any claim for BPR is for a business unconnected to any farming activities.
More information is available in the Chancellor's recent letter to the Chair of the Treasury Select Committee: https://committees.parliament.uk/publications/45691/documents/226235/default/.
Asked by: Victoria Atkins (Conservative - Louth and Horncastle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department’s publication entitled Summary of reforms to agricultural property relief and business property relief, published on 30 October 2024, how many Agricultural Property Relief claims in the reference period also included claims for Business Property Relief.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
In 2021-22, 782 estates making agricultural property relief claims also made business property relief claims.