Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Department's policy paper entitled Summary of reforms to agricultural property relief and business property relief published on 30 October 2024, how many estates she expects to be affected from the combined reforms to the two reliefs on which the £495 million estimate in revenue is derived in 2027-28.

2021-22 is the latest available year for outturn statistics on APR and BPR claims. Further details around the timing of data releases for statistics around Inheritance Tax liabilities can be found in the ‘timeliness and punctuality’ section of the statistics’ Background Quality Report at:

https://www.gov.uk/government/statistics/inheritance-tax-liabilities-statistics/inheritance-tax-liabilities-statistics-background-quality-report#timeliness-and-punctuality.

The Government 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.

It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR. Up to around 520 of these are expected to relate to claims for APR (including those that also claim for BPR), and this number falls to around 430 when claims that include AIM shares are excluded. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.