Consultation Response on Reforms to Inheritance Tax, Agricultural Property Relief and Business Property Relief: Application in Relation to Trusts

The CLA has responded to a consultation by HMRC on how the new £1m allowance for 100% agricultural and business property reliefs, announced in the October 2024 Budget, will apply to Trusts.

In addition to responding to the technical questions posed, we expressed our disappointment at the restricted nature of the consultation. We have highlighted the impact the changes to the reliefs will have, including increasing compliance burdens and costs.  We have called for a full impact assessment to be undertaken by the government, that includes an assessment of the effect these changes will have on the economy. We have also asked for the draft legislation to be produced and published promptly so that the specific details of the changes to the reliefs can be scrutinised and understood.