Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the Budget’s changes to agricultural property relief from inheritance tax on the mental health of farming families who own small farms.

At the Budget, the Government took a number of decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services. The Government has done so in a way that makes the tax system fairer and more sustainable.

At the Budget, the Government set out that, from 6 April 2026, in addition to existing nil-rate bands and exemptions, the 100% rate of relief will continue for the first £1 million of combined agricultural and business assets, and the rate of relief will be 50% thereafter.

Almost three-quarters of estates each year claiming agricultural property relief, including those that also claim business property relief, are expected to be unaffected.

The Government is committed to supporting farmers and agricultural workers in accessing the support that they need as they undertake the vital work of producing food and looking after the environment. For example, through its Farming and Countryside Programme, the Department for Environment, Food and Rural Affairs (Defra) already works with a range of farming charities, including the Royal Agricultural Benevolent Institution and the Yellow Wellies charity, which have highlighted mental health challenges for farming communities.