NFU Scotland has urged the UK Government to immediately pause proposed changes to inheritance tax (IHT) for farmers until the newly launched review into farm profitability is complete.
In a follow-up letter to Chancellor Rachel Reeves MP, NFU Scotland President Andrew Connon welcomed the appointment of Baroness Minette Batters to lead the Government’s profitability review - but warned that pushing ahead with IHT reforms in parallel would seriously undermine the credibility and impact of that process.
“You cannot hold a meaningful review into farm profitability while simultaneously implementing tax policies that reduce it,” said Mr Connon. “We are calling for a clear and time-limited pause on all changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) until the review has concluded and its recommendations have been properly considered.”
While IHT changes would affect farms at the point of succession, Mr Connon also highlighted the ongoing impact of other Budget measures - such as increased National Insurance costs, reclassification of double cab pick-ups and the Carbon Border Adjustment Mechanism, that are already damaging day-to-day profitability across the sector.
NFU Scotland’s earlier correspondence (
News Release 43/25) flagged independent research showing that nearly half of Scottish farms are pausing or cancelling investment due to these fiscal pressures.
“The Government must not pre-judge the outcome of the review,” Connon added. “The mental and financial strain on farming families is growing. Ministers need to listen and act before these proposals cause irreparable harm.”
NFU Scotland is therefore calling on the UK Government to:
- Pause the proposed IHT reforms (including APR and BPR changes)
- Review the full fiscal package introduced in recent Budgets
- Wait for the profitability review findings before implementing major changes
The Union continues to press for a fair and evidence-based approach that supports a vibrant, sustainable rural economy - beginning with a full pause on policy changes that could pre-empt the outcome of the profitability review.
Notes to editor
• The follow-up Chancellor letter is
attached
Ends
Contact Carly Ross on 07860 642826