Prime Minister Andy Burnham is facing renewed calls to reconsider changes to Inheritance Tax ahead of the Autumn Budget, as farmers continue to raise concerns about the impact on family-owned farms and businesses.
Farming groups from across the UK are urging the Prime Minister to honour his pre-election commitment to “look again” at reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR).
Before the Makerfield by-election, Mr Burnham acknowledged concerns surrounding the proposed changes and pledged to revisit the issue if he became Prime Minister.
The reforms came into effect on 6 April 2026 and introduced a £2.5 million allowance per person for assets qualifying for 100% APR and BPR. Qualifying assets above this level face a reduced rate of relief, potentially bringing more agricultural and business property within the scope of Inheritance Tax.
The government had originally proposed a much lower £1 million threshold. However, following significant pressure from farmers and business groups, this was increased to £2.5 million before the changes were introduced.
Despite the concession, concerns within the agricultural sector have not disappeared. Farmers have argued that valuable land and business assets do not necessarily translate into readily available cash, meaning some families could face difficult decisions when an estate becomes liable for tax.
The Ulster Farmers’ Union (UFU) has said the government still has more work to do to rebuild trust with the farming community and is among those calling for further action.
Attention will now turn to the Autumn Budget and whether the new government decides to amend the rules further.
For farming families and owners of qualifying businesses, any further changes to APR and BPR could have important implications for succession and estate planning, making the upcoming Budget particularly significant.
