Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the merits of putting transitional arrangements in place for changes to inheritance tax rules for family businesses.

The Government believes its reforms to agricultural property relief and business property relief get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

These reforms were announced on 30 October 2024 and will take effect from 6 April 2026.