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Farmers seek meeting with Rachel Reeves over inheritance tax reforms

15 August 2025
in Business
Reading Time: 3 mins read
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Farmers seek meeting with Rachel Reeves over inheritance tax reforms
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The National Farmers’ Union (NFU) has requested a meeting with chancellor Rachel Reeves to discuss amendments to Labour’s planned inheritance tax reforms, following fresh analysis suggesting the changes could disproportionately impact working family farms.

From April, farms and other agricultural property will be brought into inheritance tax rules under Labour’s plan to raise revenue for public services and close a loophole used by some wealthy landowners. The policy will end a decades-long exemption and apply a 20% levy on the value of agricultural and business property above £1m.

While the government insists the reforms “largely protect family farms whilst limiting claims by the wealthiest estates”, a new report by the Centre for the Analysis of Taxation (CenTax) suggests the relief could be better targeted to prevent tax planning while further protecting legitimate farm businesses.

Dr Andy Summers, CenTax director and associate professor at the London School of Economics, said: “The relief could be better targeted to reduce its use for tax planning and further extend protection for businesses, including farms.”

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