Farming Inheritance Tax changes must be delayed
Wrexham MP Andrew Ranger has welcomed the publication of a report from the Welsh Affairs Committee which concludes that proposed inheritance tax changes for farmers should be delayed until a full impact assessment on the effects on Welsh farmers is made.
Mr Ranger is one of 11 MPs from 4 political parties who sit on the committee which has been undertaking an inquiry into ‘Farming in Wales in 2025: Challenges and Opportunities’. In last year’s budget, Chancellor Rachel Reeves proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) which are due to take effect in April 2026. The report also points to the differences in between Wales and England in terms of farming practices and conditions, arguing that Westminster needs to understand them better.
The report is critical of the UK Government’s approach, it reads “we are disappointed that the Government has maintained a complacent approach to measuring the impact of these tax changes despite the scale of public disquiet in Wales.” The report also finds that the UK Government has not provided any specific farming data for Wales nor taken account of the disproportionate impact that the changes to inheritance tax will have on elderly farmers and those with a terminal illness. The Welsh Affairs Committee heard specific evidence about this from RABI (the farmers charity) regarding this issue, alongside case studies highlighting the mental health crisis in farming. The committee supports the principle of reforming APR and BPR to close the loophole that has resulted in rich investors buying agricultural land to avoid paying tax
Chair of the Welsh Affairs Committee Ruth Jones MP, speaking to the BBC said, “Our farms are by and large not wealthy tax evaders, they are farms made by families and for families.” She added, “At the moment the government doesn’t seem to care about Welsh farmers, and we’re asking them to take account of the differences in Wales and halt the taxes until a full impact assessment can be made.”
Andrew Ranger MP explained “The report today reflects the significant amount of evidence we have received as a committee since March. I know from having met and spoken to farmers in Wrexham and the farming unions that the proposals for inheritance tax changes have caused anger and frustration that the Government isn’t listening. I hope that this report which is endorsed by the National Farmers Union will show that their voice has been heard by MPs on the Welsh Affairs Committee and that we will continue to make the case to the Treasury in the lead up to the Budget. The proposed inheritance tax changes must be paused to enable a full assessment to understand what effect these will have on farmers in Wrexham and across Wales.”
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