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Council calls for government to put planned changes to inheritance tax rules for farmers on hold

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Councillors in Tendring are calling for the Government to put planned changes to inheritance tax rules for farmers on hold.

Tendring District Council (TDC) Leader Mark Stephenson will write to Chancellor Rachel Reeves to ask her to pause changes to Agricultural Property Relief and Business Property Relief, which were announced in October’s Budget.

The changes will see inherited agricultural assets valued at more than £1million subject to a 20 per cent inheritance tax, from which they were previously exempt, from April 2026.

At a meeting of the full council last week, councillors backed a motion calling on Councillor Stephenson to write to the Chancellor and lobby the Local Government Association (LGA).

Following the meeting Councillor Stephenson, said: “Councillors fear the changes could potentially seriously affect Tendring because a large part of the district is of a rural nature.

“Championing our local environment and supporting our local businesses and communities runs through everything we do – and that includes supporting farmers, who are also our residents.

“I will be writing to the government to call for the introduction of the new rules to be paused until a full and national consultation takes place with all those who would be affected – prepared with the Department for Environment, Food and Rural Affairs (DEFRA) and the National Framers Union (NFU) to ensure it reaches a maximum number of farmers.

“Councillors recognise that family farms across the district have raised concerns for the future of their businesses – and that we depend on them for our food security as well as the stewardship of our countryside.

“It was noted that our farmers support this council and our local communities in a variety of ways and farming makes a significant contribution to our district’s economy.”

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