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Written question asked by Luke Evans (Conservative) on Wednesday, 2 September 2026, in the House of Commons. It was due for an answer on Friday, 4 September 2026. It was answered by Stephen Morgan (Labour) on Friday, 18 September 2026 on behalf of the Department for Environment, Food and Rural Affairs.

Agriculture: Inheritance Tax

Question

To ask the Secretary of State for Environment, Food and Rural Affairs, what recent discussions she has had with the farming community on the prospect of higher inheritance tax bills if a farm invests in a new farm reservoir or an irrigation system.

Answer

Ministers and officials meet regularly with representatives of the farming sector, to discuss a range of issues.

The Government is taking action to make it easier to build reservoirs. This includes reducing unnecessary barriers, updating planning guidance, and funding up to £15 million to build on-farm reservoirs, helping farmers store water and become more resilient to future droughts.

The Government continues to provide very significant relief from inheritance tax for agricultural and business assets. A couple are able to pass on up to £5 million of such assets tax-free between them, on top of the existing allowances such as the nil-rate band.

Secondary information

Type
Written question
Reference
26639
Session
2026-27
Subjects
Agriculture Inheritance tax Irrigation Reservoirs
Link
View this Written question on www.parliament.uk