Powys MP pushing for full removal of family farm inheritance tax

December brought a rare moment of hope for the Mid Wales farming community, following a Labour U-turn on the family farm inheritance tax. 

The Government has now confirmed that the inheritance tax threshold due to come into force next April will be raised to £2.5 million, or £5 million for married couples. This represents a significant concession and a clear response to sustained pressure from farmers and the Welsh Liberal Democrats. 

From the moment this tax was announced in last year’s Budget, my Liberal Democrat colleagues and I opposed it. We warned early on that it would place unacceptable pressure on family farms that are central to rural economies and to food production in Wales. 

I raised these concerns repeatedly in Parliament and worked closely with farmers in my constituency to ensure their voices were heard clearly in Westminster. I am grateful to the many Welsh farmers who engaged with this campaign, spoke out publicly, and shared the realities they face on the ground. 

However, while this concession is welcome, it does not yet provide the certainty that our family farms need. Many remain under severe financial pressure, facing rising costs and incomes that often fall close to minimum wage levels. Without further action, the long-term viability of family farming in Wales remains at risk. 

That is why we are submitting amendments to push for the full removal of this tax. Alongside this, the Liberal Democrats are calling on the Government to bring forward a serious rural economic strategy that genuinely supports farming and properly recognises the vital role farmers play in our rural economies. 

Our farmers deserve a fair deal from Westminster, and I will continue pressing the Government until they get one. 

If I can be of assistance at any time, please contact me at david.chadwick.mp@parliament.uk or on 01792 316380. 

Brecon, Radnor and Cwm Tawe MP David Chadwick