Farm Retail Association concerned inheritance U-turn does not go far enough

The Farm Retail Association (FRA) has cautiously welcomed the government’s announcement on 23 December regarding significant revisions to Inheritance Tax (IHT) for farming businesses. The move follows over a year of intensive lobbying by the FRA and a coalition of agricultural bodies.

While the FRA views the adjustment as a positive step toward securing the future of family-run farm businesses and the specialist food retailers they support, the association maintains that the 14-month delay in reaching this decision has caused unnecessary distress and stalled investment across the sector.  The FRA is also not sure that the new threshold goes far enough to protect all family farms, and would also like to see revisions to BPR to ensure diversifications are covered in this policy.

Throughout 2024 and 2025, the FRA led a sustained campaign to highlight the catastrophic impact of the original tax proposals. This included a high-profile parliamentary event in November where FRA members met with MPs to demonstrate the vital role farm shops and farmers markets play in the UK economy. Central to this advocacy was the reminder that 75p of every 1 pound spent in a farm shop remains within the local economy - a level of reinvestment that is now at less risk following these tax changes.

Emma Mosey, Chair of the Farm Retail Association, commented:

"The revisions announced by the government are a positive step in the right direction and provide a much-needed lifeline for the family farms that underpin our industry. However, it is a great shame that it has taken 14 months for the government to listen to the experts and the people on the ground. This period of uncertainty has caused significant anxiety for our members and has undoubtedly hindered the growth and succession planning of many rural businesses."

"While we are relieved that common sense has finally prevailed, this move will not fully heal the damage done to the trust between the government and the farming community over the last year. Our focus now turns to ensuring that the new Government Food Strategy, which now specifically includes farmers markets, is implemented in a way that truly supports the resilience and growth of independent retail."

The FRA will continue to monitor the implementation of these tax changes and lobby for a policy environment that recognizes farming not as a commodity, but as the essential nourishment and community infrastructure of the nation.