Farmers’ clawback alternative turned down

Treasury ministers have refused any suggestion of a compromise offered by farming unions and organisations in connection with the planned changes to inheritance tax which take effect from April 2026.

In a meeting with exchequer secretary James Murray and farming minister Daniel Zeichner farming leaders presented the clawback option as an alternative to the changes to agricultural and business property reliefs.

The proposed solution is to retain 100% agricultural and business property reliefs for qualifying assets. However IHT would only be applied to these assets if they were sold within a specified period post-death. The aim would be to maintain the day-to-day operations of businesses after a death while disincentivising the use of IHT reliefs as a tax avoidance measure.

The organisations – the Country Land and Business Association (CLA) Central Association of Agricultural Valuers Tenant Farmers Association and National Farmers’ Union (NFU)...