Family farms reducing growth in bid to minimise inheritance tax

Nearly 90% of rural businesses have paused investment, a survey by the Country Land and Business Association (CLA) reveals, and 70% are worried that their business will not survive the next 10 years.

9 Oct 2026

Nearly 90% of rural businesses have paused investment, a survey by the Country Land and Business Association (CLA) reveals, and 70% are worried that their business will not survive the next 10 years.

The survey of 700 businesses was undertaken following the introduction of a £2.5 million cap on 100% Agricultural and Business Property Relief for Inheritance Tax from April 2026. Nearly 85% of respondents expected the cap would not cover the value of their businesses with almost 50% stating they'd have to sell up to a quarter of their land to cover the expected resultant tax bill.

With the Autumn Budget only a few weeks away, the CLA is calling for the IHT reforms to be scrapped. Gavin Lane, CLA President, said:

'Families who've spent decades building up their businesses are being forced to shrink them down again just to keep hold of them. They are scaling back ambitions, letting buildings deteriorate, and stripping out value, all to pass on businesses that may no longer be profitable.'

Internet link: CLA