CLA comment: MPs call on government to delay inheritance tax changes
THE CLA (Country Land and Business Association) has commented on a report by the cross-party
Environment, Food and Rural Affairs Committee today (Friday 16 May) which calls on the
Government to delay announcing its final agricultural property relief (APR) and business property
relief (BPR) reforms until October 2026, to come into effect in April 2027.
The Efra Select Committee News release and report can be accessed here .
The report refers to a March 2025 survey of UK farmers that found that before the Autumn
Budget 70% felt optimistic about the future of their rural businesses, but that number fell to 12%
after the Budget. The survey also said that 84% of farmers sampled feel that their mental health has
been affected by the Autumn Budget with farmers citing the Sustainable Farming Incentive closure
and changes to inheritance tax reliefs as the common areas creating concern.
Country Land and Business Association (CLA) President Victoria Vyvyan said: “The government
has dug itself into a deep hole by targeting family farms and businesses, and must now pause, listen
and consult.
“The ‘clawback’ alternative that the CLA and other stakeholders propose could limit the damage
to businesses. It would allow rural and other family businesses to continue to make medium and
long-term investment decisions, unlocking the stalled growth in business investment in the rural
economy and keeping land in production.
“This plan would also target those who have bought land to shelter wealth for short-term gain,
and will still deliver revenue that the Treasury needs. The CLA will not give up, we will carry on
campaigning against the current disastrous policy, and the government has to work with us and
commit to finding a solution.”
The CLA believes other alternatives, such as transferability of the £1m APR/BPR allowance or a
relaxation of the seven-year rule on gifting, would not be enough to help businesses or address the
shortcomings of the current policy.
The CLA has argued that the government’s cap could affect 70,000 UK farms, some as small as
100 acres. It will also have a detrimental impact on farm profitability, with an average 350-acre
English arable farm owned by a couple needing to spend 99% of their yearly profit over a decade to
afford their inheritance tax bill.
