The new inheritance tax policy could affect up to five times more farms than the Treasury initially said, according to new analysis.
The government said its plan to impose 20% inheritance tax on farms worth more than £1m will affect 500 farms in the 2026-2027 financial year, based on analysis of past claims.
However, the Central Association of Agricultural Valuers (CAAV) has looked at the numbers and found 2,500 farms could be affected each year.
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The group, which represents businesses across UK agriculture, found up to 75,000 individual farms over a generation – which they define as 30 years – could be affected by the tax.
Jeremy Moody, author of the report and secretary and adviser at CAAV, told Sky News the government figures had not taken into account farmers who only claim Business Property Relief (BPR).
Farmers protested last week, saying the tax would mean the end of many family farms because they would have to sell off land to pay it.
Environment Secretary Steve Reed had previously promised he would not change inheritance tax for farmers.
Many have said the government’s figures were incorrect and more than 500 family farms would be affected a year.
The National Farmers’ Union (NFU) said the real number is two thirds of farms of the UK’s 209,000 farms, while the Country Land and Business Association (CLA) said 70,000 farms would be affected.
But Mr Reed has insisted the figure is based on “raw data” and said the Treasury had taken into account all possible figures.
The Treasury said its figures came from data on farms that had claimed Agricultural Property Relief (APR), as well as those who claimed both APR and BPR – but not solely BPR.
Currently, to get 100% inheritance tax relief farmers have to claim APR for farmhouses, land and…
