Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the planned reforms to agricultural property relief, what steps her Department will take to support farmers who have lost their exemption because their (a) spouse or (b) civil partner has died.

The Government published information about the reforms to agricultural property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.

The reforms mean that individuals can access 100% relief for the first £1 million of combined business and agricultural assets, and 50% relief thereafter - meaning an effective tax rate of up to 20% – regardless of their relationship status. Any liability can also be paid over 10 years interest free – a benefit that is not seen anywhere else in the inheritance tax system.

It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.