The National Farmers' Union (NFU) has requested a meeting with Chancellor Rachel Reeves to discuss inheritance tax reforms after new evidence from tax experts suggests the changes may not achieve their intended goal of preventing wealthy individuals from using farmland to avoid tax.
A report from the Centre for the Analysis of Taxation (CenTax) indicates that the reforms, due to take effect next April, would largely protect family farms while limiting claims by the wealthiest estates. However, CenTax director Dr Andy Summers noted that the relief could be better targeted to reduce tax planning and further protect businesses, including farms.
The reforms, announced in the October Budget, sparked protests from farmers who argued they threaten family farms and food security. The analysis found that 86% of affected farm estates could pay their tax bill using non-farm assets, leaving around 70 estates out of 1,560 unable to do so.
NFU president Tom Bradshaw welcomed the report and called for discussions with the chancellor before April. He expressed concern about the impact on working family farms and urged adjustments to mitigate the effects while still meeting Treasury requirements.
