Dan Tomlinson

Dan Tomlinson

Labour — Chipping Barnet

Speaking in the House of Commons on 5 January 2026

Debate

Agricultural Property Relief and Business Property Relief

Contribution

If the Government had not made these changes in December, Opposition Members would have been standing here asking us to make those changes. We are coming forward with a revised position—we are increasing the threshold from £1 million to £2.5 million—and Members are criticising us for that change. We think it is the right thing to do, and we are doing it in good time—before the Finance (No.2) Bill, in which these changes will be made, is voted into law later this year. Yes, some estates—the very largest—will continue to pay more after these changes, but it is worth bearing in mind that, relative to the position of a few months ago, estates worth £2.5 million will now pay significantly less; there is a £300,000 reduction in their tax liability. For an estate worth £5 million, it is a £600,000 reduction. These are significant reductions in the amount of tax that the very largest estates will have to pay, but we do think that it is right and fair to continue with a reform that strikes the right balance between the need to raise more revenue and the need to protect smaller family farms.

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