CLA strongly criticises Treasury’s indifference on inheritance tax reliefs
THE government has claimed capping vital inheritance tax reliefs for farmers and family businesses
will not have “any significant macroeconomic impacts”.
The CLA (Country Land and Business Association) has strongly criticised its impact assessment of
the changes, published this week along with the draft legislation of the policy. The reforms are due
to come into force in April 2026, with the government arguing it “is not expected to have a material
impact on food security” and “would not be expected to impact the UK’s ability to source imports
from international markets”.
The CLA has spent months trying to explain the many consequences, and offered a sensible
alternative via the ‘clawback’ mechanism.
Country Land and Business Association (CLA) President Victoria Vyvyan said: “This government is
incapable of listening. The ending of vital inheritance tax reliefs will crush farming and family
businesses, but the Treasury remains deaf, blind and indifferent to the damage to the economy.
“The CLA has made clear, and costed, the consequences of this ideological folly; the loss of jobs,
the reduction in GVA. Together the industry has offered a sensible alternative via the ‘clawback’
mechanism. The Treasury has given no reason for failing to consider an alternative.
“This is not an impact assessment; it reads like an amateur note from an arrogant government
setting and marking its own homework and simply not understanding businesses and food security.
“To be clear, this is a tax burden on businesses, not wealth, delivered without consultation and
with derisory engagement. Farmers and family businesses are the backbone of the economy and
deserve to be heard by a government that seems hell-bent on pressing ahead, indifferent to the
slow but inevitable train crash.”
What else did the government claim?
In the publication the government said:
· the changes will earn the Treasury £230m in 2026/27, and £520m a year in following years.
· continues to claim around 2,000 estates will pay more inheritance tax in 2026/27 than they
would previously have been liable to pay.
· admits the policy “will have an impact on families going through bereavement and those
planning for succession, where the estate has an increased inheritance tax liability as a result of this
measure”. But it claims the reforms are “not expected to have a significant impact on family
formation, family stability or family breakdown”.
The CLA will continue to campaign and lobby on members’ behalf, using data, case studies and
modelling to argue the case against these tax changes.
