Liberal Democrat MP for North Cornwall, Ben Maguire, has announced today (Monday, November 11), that he will push Minister of State for Food Security and Rural Affairs, Daniel Zeichner, to scrap the proposed changes to the Agricultural Property Relief (APR) rate in their meeting tomorrow.
From April 6, 2026, 100% relief from inheritance tax will be restricted to the first £1 million worth of property and agriculture assets, while landowners will pay inheritance tax at a reduced rate of 20%, rather than the standard 40%, above this rate.
These reformed changes to inheritance tax were dubbed the ‘Family Farm Tax’, and threaten to burden family-run farms with steep inheritance tax bills, placing hundreds of farms across Great Britain at risk, challenging the future generation of farmers in the UK.
APR
Maguire, who has been a long-standing advocate for the farming communities of Cornwall, and right across the country, has condemned the government’s move to reduce APR levels “as yet another blow to rural livelihoods”.
Family farms, which form the backbone of many rural communities and contribute to the region’s food security, face significant financial challenges under these new tax provisions which form part of the new Labour government’s budget, which was announced on October 30.
MP Ben Maguire said: “Our local farmers have already weathered years of hardship from unfavourable trade deals and income cuts. This new tax hike could be the death knell for many family farms in North Cornwall.
“I will be making the case directly to the minister in my meeting tomorrow to scrap this damaging policy and support our farmers instead.
“It’s time for the government to reverse course and adopt measures that protect the future of farming, not jeopardise it.”
Full exemptions for farm transfers between spouses and civil partners continue to apply, meaning any agricultural and business assets left to a spouse or civil partner will remain tax free.
Following the death of a surviving spouse, an estate can pass on £1 million free of inheritance tax if they leave their residence to direct descendants, however, any transfers that take place more than seven years before a farmer’s death, will continue to fall outside the scope of inheritance tax.
