MP urges caution at rumoured changes to ‘death tax’ agenda

The DUP Agriculture spokesperson said: “The rumour mill is rife, but at this stage I think we shouldn’t get carried away by unconfirmed reports about potential reforms to the Chancellor’s ‘death tax’ agenda.

“We are six weeks away from the autumn 2025 Budget, and although the exact details are unknown, there seems to be mounting speculation that the Treasury is re-thinking its farm tax raid.

“I really hope there is substance to the rumours, but given its track record I’m dubious that the Labour government will ‘come charging in on a white horse’ at the next budget. Despite all the spin and its election manifesto, it has become clear that the Labour government is no friend of the farmer.”

The MP added: “Inheritance tax reforms are a contentious issue and one that I have fought hard against from the outset. We’ve witnessed a number of significant Labour government U-turns in the last number of months so maybe it is time for the Chancellor to find reverse gear on the ‘farm tax heist’.

“There have been no encouraging signs to date, in fact, she has blatantly ignored the warnings and refused multiple invitations for roundtable discussion with industry stakeholders. The Chancellor has buried her head in the sand and remained belligerence and steadfast in the belief that her policy changes to inheritance tax are “right and fair” and “protect ordinary working people”.

Ms Lockhart is calling on the government to take its time to get things right.

She said: “There is too much at stake to get this wrong! Inheritance tax changes are set to be implemented in April 2026, but I’m urging the government to slow down and think-twice before introducing any further ‘half-baked’ solutions.

“The ‘devil will be in the detail’ when it comes to future policy, and industry pundits have been expressing concerns about further unfair and unaffordable tax rises, especially as the Chancellor battles to fill an ever-increasing fiscal black hole.

“Changes to historical inheritance tax relief will have an impact on family farms and jeopardise national food security. The Chancellor needs to do the right thing on Thursday, 27th November. A radical rethink would be very welcome and will rebuild trust within the agri-food sector.”

Carla Lockhart added: “In the meantime, we can’t be complacent. This battle isn’t over and I suggest we keep fighting and lobbying against the unwelcome changes to agricultural property relief and business property relief – the latter of which will impact all businesses, not just family farms.

“Ideally, we’d all like to see a complete reversal of the inheritance tax proposals, but like it or not, may have to settle for a compromise. There are a number of other options open to the Treasury, but unconfirmed reports suggest that the government is considering the ‘minimum share rule’ brought forward in the recent CenTax Report.”

The Centre for the Analysis of Taxation (CenTax) claims that its proposals would double the revenue the Treasury expects to raise from the current inheritance tax proposals. The new plan would give full relief up to £5m per person (£10m per married couple), where farmland and business assets form at least 60% of an estate. There would be a 50% relief on the £5m per person, but no relief thereafter.

Concluding the MP said: “Many have welcomed the CenTax proposal which would undoubtedly improve the situation for numerous families, however, there is no indication that the government is even in the mood for change, let alone ready to implement this report.

“There is no doubt the CenTax proposal will provide a safety net for small and medium-sized family farms, but concerns remain around the larger family farms. The proposals aren’t index linked and don’t take into account inflation and the rapidly rising cost of land in Northern Ireland. Further analysis of its long-term outworkings are needed.

“The plan will ensure that financial investors and big corporations who have been snapping up land will come under the treasury’s radar.

“The current £1m parameter will decimate family farms that have been handed down through the generations. Raising the threshold will sustain family farms, who otherwise couldn’t afford the ‘death tax’ liabilities.”