Question to the HM Treasury:

To ask His Majesty's Government what is their estimate of the number of farmers, tenants, partnerships, or limited companies, who do not use agricultural property relief but rely on business property relief, and who will be impacted by the reduction of business property relief for inheritance tax.

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.

The reforms are expected to affect around 2,000 estates in 2026-27. Around 500 of these are expected to claim agricultural property relief, including those also claiming business property relief. Around 1,500 are expected to claim business property relief. Around 1,000 of these are expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges. This means around 500 estates are expected to claim business property relief on a range of other eligible business assets and pay more inheritance tax.

The reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those only relating to holding shares designated as “not listed” on the markets of recognised stock exchanges) will not pay any more inheritance tax, nor will around three-quarters of estates claiming agricultural property relief, including where they also claim business property relief.