Northumberland MP Calls for Government to Rethink Farming Inheritance Tax
A Northumberland MP has called on the Government to reconsider its controversial plan to introduce inheritance tax on farmland. David Smith, Labour MP for North Northumberland, had previously opposed a Conservative motion critical of the policy last December. However, he now believes the Government should re-examine the policy due to its potential heavy impact on family farms.
Changes to Inheritance Tax on Farmland
Starting April 2026, inherited agricultural assets valued over £1 million, which were formerly exempt, will face a 20% inheritance tax.
Proposed Solution: Minimum Share Rule
Speaking in Parliament on November 4, Mr. Smith supported a proposal from the Centre for the Analysis of Taxation (CenTax) called the minimum share rule:
- Landowners whose farms and businesses make up less than 60% of their estate would pay a higher tax rate.
- This additional revenue would fund a complete exemption from inheritance tax for land valued up to £5 million.
- The rule targets estates that do not qualify for 60% or more agricultural or business property relief, as they are less likely to be actively run farms.
“I’m proud to support a government that believes in progressive taxation. Those with the broadest shoulders should bear the greatest burden.”
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Summary: David Smith advocates revisiting farmland inheritance tax rules to protect family farms, supporting a fairer tax system that favors active farmers and progressive taxation principles.