Commenting on recent reports Agricultural Property Relief* could be removed in the Budget, Sean McCann, Chartered Financial Planner at NFU Mutual, said:

"Removing Agricultural Property Relief could be devastating for the UK's traditional family farms. Financial returns from agriculture can be lower than many other businesses, so APR enables farmers to invest in their long-term future with the knowledge their farm is sustainable for the next generation.

"If APR is reduced or removed, it would seriously undermine confidence among farmers to make the level of investment currently required for farming to succeed post-Brexit.

“It would also make it extremely difficult for farmers to change the way they work to meet the industry's ambitious target to be carbon neutral by 2040.

"Combined with cuts in the Basic Payment Scheme from 2021 confirmed this week, many farmers are facing an uncertain financial future.

"The Office of Tax Simplification’s recent report on inheritance tax acknowledged the important role both Agricultural and Business Property Relief play in ensuring farms and businesses are able to survive when passing between generations."

Office of Tax Simplification Review of Inheritance Tax (p45)

Agricultural Property Relief* (APR) allows farmers to pass on agricultural property with reduced Inheritance Tax bills, provided it is used to grow crops or rear animals intensively. Business Relief reduces the value of a business or its assets when working out how much Inheritance Tax has to be paid.