A cross-party coalition of Members of Parliament has urged ministers to delay the planned increase in inheritance tax on farming estates until 2027.

With rising apprehensions about the potential ramifications of this tax hike, the Environment, Food and Rural Affairs Committee, which features seven Labour MPs, emphasized the need for more time to evaluate its effects on “vulnerable farmers.”

Members of the committee criticized the government for not adequately consulting stakeholders about the proposed policy, describing its potential impact as “disputed and unclear.”

The proposed changes include a 20 percent inheritance tax on agricultural assets valued over £1 million, which would take effect in April of next year. While ministers argue that various tax exemptions would allow couples to pass on farms worth up to £3 million without incurring taxes, critics counter that some family farms may still be adversely affected.

In a report released on Friday, the rural affairs committee requested that the government postpone the announcement of final changes to agricultural property relief (APR) and business property relief (BPR) until October 2026, with new regulations coming into force in April 2027.

The MPs believe that this delay would enable a more thorough development of tax policy and provide vulnerable farmers additional time to obtain professional advice.

Criticism was directed at the Department for Environment, Food and Rural Affairs (Defra) for its “poor communication and last-minute decision-making” following various rumors and leaks.

According to the committee’s conclusions, “We are concerned, however, that no consultation, impact assessment, or affordability assessment was conducted prior to the announcement of the reforms.”

They also noted, “The absence of a proper evaluation regarding the changes raises significant questions about how these alterations will affect family farms, land values, tenant farmers, food security, and farmers in devolved regions, leading to a significant risk of negative unintended consequences.”

Furthermore, the committee cautioned that these reforms could disproportionately impact the most vulnerable, particularly older farmers or those managing less profitable or rented holdings.

While the committee endorsed the government’s intent to reform APR and BPR to address loopholes that allow wealthy investors to evade inheritance tax through agricultural land purchases, they highlighted alternative reform suggestions proposed by stakeholders and experts.

Additionally, the committee voiced concerns over the abrupt termination of the sustainable farming incentive, a green funding initiative for farmers, stating that this action has diminished trust in the government.

Alistair Carmichael, the committee chairman, indicated that the government has a chance to “rebuild trust and confidence in the farming sector.”

“I hope the government will give serious consideration to our recommendations,” he said.

He further pointed out that recent government actions had negatively influenced farmers’ confidence and wellbeing, despite substantial protests, including large tractor demonstrations outside the Houses of Parliament.

Carmichael remarked, “Defra’s engagement with farmers has been inadequate, marked by confusing and sometimes contradictory messages.”

He emphasized that farmers play a crucial role in achieving food security and environmental restoration, stating, “They urgently need clarity and advance notice of changes. It is unreasonable to expect them to adjust their businesses without sufficient warning.”

A government spokesperson responded, stating, “Our reforms to agricultural and business property relief are essential for funding public services. Three-quarters of estates will still incur no inheritance tax, while the remaining quarter will pay significantly less tax, with payments able to be spread over ten years interest-free.”