L

Lord Katz (Lab)

Speaking in the House of Lords on 1 December 2025

Debate

Small Farms

Contribution

I thank the noble Baroness for that question. To be clear, I do not know whether the Treasury has done precisely that analysis, but I can say that at the Budget last week, the Chancellor announced that any unused allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners from 6 April next year. We have taken this action after listening to feedback from many stakeholders who called strongly for the change to planned reforms to reduce complexity and remove an unfairness for widows and widowers. This change will double the tax-free allowance for agricultural business property available to estates of those widowed before 6 April 2026. It is worth pointing out that almost three-quarters of estates claiming agricultural property relief, including those that also claim business property relief, are not expected to pay more tax as a result of the changes in 2026-27, based on the latest available data.

More from Lord Katz (Lab)

Other recent Hansard contributions by the same speaker.

About Hansard

Hansard is the official verbatim record of proceedings in the UK Parliament. Every word spoken in the Commons and Lords is recorded and published — this page is a single contribution from that record.

Partner sites