UK government denies answering key IHT questions
23rd May 2025
NFU and several other organisations have written to the chancellor calling for urgent transparency in regard to the reforms to BPR and APR after ministers refused to answer key questions on the details of their controversial family farm tax policy.
A Freedom of Information (FOI) request from the NFU – one of many it has currently lodged with Defra – along with a similar request from the CLA, was submitted after the government dismissed, without justification, the alternative ‘clawback’ option proposed by industry bodies.
This option would tax business assets at the full 40% inheritance tax rate, but only if sold by a family successor within seven years of the owner’s death. This proposal offers a more finessed policy, both meeting the government’s money-raising objectives while avoiding irreparable damage to the family business community.
The Treasury claimed this alternative would raise “much less” than current proposals but has refused to release the modelling for that conclusion, even after both the NFU and CLA individually submitted FOI requests. The department stated the information would not be in the public interest.
The NFU said that the Treasury’s dismissal of the policy and refusal to share its analysis have undermined businesses’ trust in policymaking, especially as the Office of Budget Responsibility, which ministers continue to cite for support, describes the government’s figures as “highly uncertain”. The policy has also been challenged by the Efra Select Committee and Labour’s own tax expert.
‘Cruel’ farm tax
The letter written by the farming leaders is urging the Treasury to publish its analysis of the reforms and the clawback alternative to allow for proper public scrutiny.
NFU president Tom Bradshaw said: “The family farm tax is cruel, unfit to become legislation and is triggering a crisis of confidence across the farming sector.
“As we outlined in our Spending Review proposals, one of the most significant actions the Chancellor could take to restore trust and unlock investment and growth is to urgently review the clawback proposal.
“The Efra Committee recently underlined the importance of rebuilding trust in the industry. As highlighted in the joint industry letter, publishing the government’s analysis of alternative inheritance tax reform options and engaging in constructive dialogue around a more targeted approach would be a strong first step in the right direction.”
READ MORE: Olly Harrison launches petition to delay inheritance tax changes
‘Show us’
CLA president Victoria Vyvyan added: “The impact of the government’s inheritance tax changes is casting a long shadow over the future of farming and family businesses.
“In response to a CLA Freedom of Information request about the research into the ‘clawback option’, the Treasury says it is not in the public interest to explain itself. We disagree – we think it is very much in the public interest to know what data they used and how.
“Our ask is clear. If, as the exchequer secretary has said, the clawback alternative would raise ‘much less’ than the Treasury’s reforms – show us.”
Ms Vyvyan said that there has been no consultation, no impact assessment published and now no details given to support their claim that the clawback would raise less money than the proposed approach.
“The businesses affected deserve an accountable and transparent Treasury and this policy has been tainted from the start with being autocratic, and opaque,” she concluded.
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