Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what recent discussions she has had with the farming community on the prospect of higher inheritance tax bills if a farm invests in a new farm reservoir or an irrigation system.

Ministers and officials meet regularly with representatives of the farming sector, to discuss a range of issues.

The Government is taking action to make it easier to build reservoirs. This includes reducing unnecessary barriers, updating planning guidance, and funding up to £15 million to build on-farm reservoirs, helping farmers store water and become more resilient to future droughts.

The Government continues to provide very significant relief from inheritance tax for agricultural and business assets. A couple are able to pass on up to £5 million of such assets tax-free between them, on top of the existing allowances such as the nil-rate band.