Rachel Reeves reeling as experts warn dreaded farming tax raids should be delayed

New proposed rules on farms should be delayed to avoid “unfair treatment” a think thank has warned.

Chancellor recently , despite previously assuring no changes would be made to agricultural property relief.

Under the new rules, set to come into effect from April 2026, farmers with businesses valued over £1million could face a 20% inheritance tax. This change is set to raise £520million per year by 2029-2023.

However, from the Institute for Fiscal Studies (IFS) cites concerns that the planned changes could “unfairly” impact landowners.

While the IFS said it agrees that it is generally fair to treat agricultural land the same as other assets subject to inheritance tax, it stresses that protections are needed to avoid putting elderly farmers at risk and to safeguard food security.

David Sturrock, senior research economist at the IFS, suggested that current farm owners, who may pass away after the new rules come into effect in April 2026, should be given the “same opportunity to avoid inheritance tax as owners of other assets”.

He proposed making lifetime gifts of agricultural property inheritance tax-free if made before a certain future date.

Labour argues that the policy targets wealthy land investors who avoid inheritance tax, driving up land prices.

However, Some farmers report earning less than the minimum wage.

A Treasury spokesperson said: “As the IFS has acknowledged, the existing reliefs are unfair and inefficient.

“We remain committed to fully implementing the policy and are not considering mitigations.”