Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the cost to the public purse of implementing a change to the Agricultural Property Relief rate.

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.