The Farmers’ Union of Wales has expressed grave concerns following the announcement by the Chancellor of Exchequer in the Autumn Budget today (30.10.24) that Agricultural Property Relief (APR) will be reformed from 2026, leaving the future of many Welsh farms in the balance.
During the Budget, it was announced that the 100% rate tax relief will come to an end for businesses and land worth over £1 million in the agricultural sector from April 2026. The current 100% rate of relief will continue for combined agricultural and business under £1 million, but for assets over £1 million, inheritance tax will apply with 50% relief, at an effective rate of 20%.
This reform is likely to affect a majority of Welsh family farms,
Responding to the announcement, FUW President, Ian Rickman said:
“The FUW has previously warned that changes to the agricultural property relief would have an impact on the viability of family farms and our rural communities - as well as adverse consequential effects for related businesses and employment.
“We know the average size of farm holdings in Wales is around 120 acres - with even conservative estimates of land worth and buildings putting most farms at over £1 million in asset value.
“Agricultural Property Relief has long played an essential role to ensure those who inherit agricultural holdings are not crippled by taxes when family farms are passed from one generation to the next.
“We await further details regarding APR and what the announcement today means for Welsh Government budgets, but at a challenging period for farming in Wales, this news will add further uncertainty to farm businesses doing their utmost to produce food and enhance the environment.”
Members concerned about this issue should contact their local FUW county office for advice from our partner agent RDP Law.