Asda has joined calls for further changes to be made to the government’s controversial ‘family farm tax’.
The retailer has said that the government should pause the implementation of the tax after “engaging with farmers and listening carefully to their concerns”.
The government announced a partial u-turn on the policy in December, increasing the Agricultural & Business Property Relief threshold from its initial proposal of £1m to £2.5m, meaning spouses or civil partners can pass on up to £5m in qualifying agricultural or business assets.
Asda acknowledged that the government’s recent changes but said its “overall position has not changed – we support a full pausing of Agricultural Property Relief to allow for an in-depth consultation on the issue and its impacts”.
It comes as last month, the Finance Bill Sub-Committee, part of the House of Lords Economic Affairs Committee, published its key recommendations.
The report recommends that the government extends the Inheritance Tax payment deadline for these measures from six to 12 months and to also introduce safe-harbour periods from late interest payments for personal representatives not at fault for missing deadlines.
It has also suggested that steps should be taken to raise awareness for the reforms and produce practical guidance and support for those affected, and to monitor the long-term impact of the reforms on farms and businesses and consider changes that may need to be made as result.
“While we were pleased to see the changes the government made to these measures at budget 2025, which address some of our concerns, significant work remains to ensure that these measures work in practice for personal representatives, businesses, and farms,” said Lord (Roger) Liddle, chair of the Finance Bill Sub-Committee.
“We are particularly concerned about the impact these changes will have on personal representatives administering an estate at a time of grief.”
He added that a key theme was the lack of proper consultation on these measures, explaining that it had “failed to listen to the concerns of stakeholders early on, resulting in late-stage changes and avoidable anxiety and costs for those affected”.
The government has said it has worked with farmers to bring in the changes to the inheritance tax policy and that it is working to improve supply chain fairness, as well as putting more financial investment into farming.
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