I regularly meeting with local farmers and this week met with agricultural businesses and farmers in Bedale (pictured). They are rightly very concerned about the the loss of Agricultural Property Relief (APR), which are long-standing components of the tax regime. Without them, many businesses, including farms and family businesses, would cease to exist or would be broken up on the passing of their owner. They are critical to business planning and succession planning.
When in Opposition, the Secretary of State for Environment, Food and Rural Affairs stated that the then Opposition had no plans to change Inheritance Tax, including APR. However, at Autumn Budget, the Government announced that, while there would continue to be no Inheritance Tax on combined business and agricultural assets worth less than £1 million, above that there would be a 50 per cent relief, at an effective rate of 20 per cent, from April 2026.
Many farms would simply not survive the imposition of Inheritance Tax. Families who have farmed the land for generations could be forced to give up their businesses, their farms, and their homes, which could jeopardise the sustainability of the rural economy, as well as undermining efforts towards greater self-sufficiency in food production and compromising environmental goals.
This is precisely why I am urging constituents to sign the petition and stop the Family Farm Tax and I will be supporting farmers' campaign to reverse this disastrous move.
