IHT changes will disproportionately harm farming widows
29th May 2025
Siân Gwenllian MS has launched a campaign to draw attention to a “fundamentally unfair” aspect of the inheritance tax changes, as they will disproportionately harm farming widows across Wales.
The Welsh Plaid Cymru politician who has been representing the constituency of Arfon since 2016 called on the Senedd to support family farms by urging the Labour government to reassess the changes to inheritance tax.
The MS said: “It’s come to my attention that the changes to relief will have a disproportionate impact on women—women who are farmers’ widows—because the relief of the husband who has passed away will not be transferred to the widow to provide double the relief. Now, I’m sure that you will agree that that is fundamentally unfair.
“The families have lost out on opportunities to plan their estates and to draw up wills that would provide certainty for children for the future.
“So, will you pursue this specific point with the Labour chancellor in Westminster? I’m sure that you would agree that this is a matter of equality for women in Wales that requires your attention and that of the government.”
Siân Gwenllian MS explained that the deceased husband’s tax relief would not be transferred to the widow in order to provide double relief at the time of the widow’s death. “And, of course, it works the other way around, too, namely if the wife died, then the widowed man wouldn’t get that relief either.
“These families—and there are many of them in my constituency—have therefore missed out on opportunities to plan their estates and to draw up wills that would provide assurances to their children for their future and therefore assurances for the future of these family farms,” she continued.
READ MORE: NFU calls for IHT changes to protect elderly farmers
‘Deeply unfair situation’
In a detailed letter to the first minister, MS Gwenllian described the core issue: ‘It appears that the upcoming changes to inheritance tax relief, due to come into force in April 2026, will disproportionately and adversely affect farming widows. This creates a deeply unfair situation for many widows who inherited their husbands’ estates in good faith, unaware of future changes to tax law.
‘There is significant concern within rural communities that these tax changes, aimed at closing loopholes exploited by wealthy investors, have overreached and are now harming legitimate, working family farms across Wales.
‘Given the widespread anxiety these changes are causing, I am also keen to understand what steps the Welsh Government is taking to support farming families. Is there, for instance, provision for quick access to mental health support, targeted information campaigns, or access to free professional estate planning advice?’
In response, first minister Eluned Morgan MS acknowledged the concern by saying: “I haven’t heard that particular aspect referred to before, and, therefore, I will have discussions with the minister here before seeing if we need further discussion, just so that they are aware of that particular aspect of the inheritance tax.”
Huw Irranca-Davies MS confirmed that a meeting is being arranged to further discuss the issue.
READ MORE: Government criticised for lack of transparency in relation to IHT
READ MORE: UK government denies answering key IHT questions
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