British farmers and growers are angry and concerned by the government’s decision to introduce the family farm tax.
While the prospect of the tax is already having an impact on farmers’ confidence and their willingness and ability to invest, it is not expected to be legally in force until April 2026. The NFU will continue to use all its influence to campaign for the government to overturn the reforms to APR and BPR.
Before the new changes come into force, a significant number of legislative steps need to take place. The government can largely decide when they happen so the NFU is keeping a very careful eye on proceedings so we can interject when we need to.
See a handy timeline below to find out when the key dates are, and jump further down the page for more analysis.
Legislative timeline
It's important to note that these are projected times, and it is the government who will decide the final timetable.
- Early 2025: Technical consultation. The Treasury has committed to hold this early next year.
- March 2025: Spring Statement. This is another fiscal event when the government might formally consult on the family farm tax, or even legislates for it.
- July 2025: First draft of Finance Bill could be published on L-Day.
- October 2025: Autumn Statement. This will be another opportunity for the government to push through the new law and for the NFU to make representations against it
- November 2025: ‘Ways and Means’ motion passed by the House of Commons, giving the family farm tax temporary legal affect until the Finance Bill passes. The Second Reading of the Finance Bill must happen 30 days after the Budget, and this is the first opportunity to formally table amendments.
- Late 2025/early 2026: Third reading. The final vote on the Finance Bill in the House of Commons and a last chance to make amendments. The Finance Bill does go to the Lords, but the Lords historically do not amend Finance Bills.
- April 2026: Bill receives Royal Assent and becomes law.
Technical consultation
First, the Treasury must consult on the tax, though they are not obliged to come out for the full consultation the NFU is asking for. It could just be a small technical consultation or a ‘rubber stamping’ exercise.
This could happen any time the government chooses.
The NFU has called for an urgent and comprehensive consultation, and has been making extensive representations to the Treasury, the Prime Minister and to other Ministers and MPs about the potential impacts.
The Treasury has only committed so far to a ‘technical consultation’ by early 2025. The government is yet to formally consult on the family farm tax.
Spring Statement 2025
Photograph: amanda rose / Alamy
There will be a Spring Statement in 2025. This is another fiscal event (a moment when government makes economic announcements) and it may be at this point that the government formally consults on the family farm tax, or even legislates for it.
However, while the Chancellor retains the right to announce tax changes at the Spring Statement, these days Chancellors tend to use it to present updated fiscal and economic forecasts and announce consultations on future policies, as well as legislate for that year’s income and corporation taxes.
The NFU will be making a formal submission to the Treasury ahead of the 2025 Spring Statement setting out the latest data on the impacts of the family farm tax as well as other spending priorities for the farming sector.
L-Day
Legislation Day or L-Day is when the government publishes responses to tax policy consultations and draft Finance Bill legislation. It is usually at the end of July before parliament breaks for the summer (recess).
If the government pushes ahead with the inheritance tax changes, it will likely publish the draft legislation for the family farm tax, to be included in the 2025 Finance Bill, on L-day 2025.
There will be a further technical consultation on the draft legislation following this.
Autumn Budget 2025
The Chancellor will set out the Budget for the government for the coming years in October or November 2025.
This will be another opportunity for the government to push through the new law and for the NFU to make representations against it.
The Finance Bill 2025
The NFU is well-versed in lobbying on parliamentary bills. If the family farm tax makes it to the Finance Bill 2025, the NFU will continue to lobby against it.
The first step is usually a formality. A ‘Ways and Means’ motion is passed by the House of Commons, giving the family farm tax temporary, legal affect until the Finance Bill passes.
However, it does not mean that the new law will come into effect at this stage – the government still plans to introduce the family farm tax in April 2026.
MPs debate in the House of Commons. Photograph: House of Commons
The Finance Bill must have its ‘Second Reading’ 30 days after the Budget, so we would expect that to happen in November 2025.
A Finance Bill goes through parliament like most other bills, but there are a few differences. With most bills, a committee (on which the government has a majority) scrutinises the bill line by line.
However, the most controversial elements of a Finance Bill, which the family farm tax would certainly be, are also considered by the whole House of Commons.
Normally, the NFU works very closely with the House of Lords on scrutinising legislation. However, another key difference with a Finance Bill is that the House of Lords cannot amend it and they do not scrutinise it line by line.
The key moment
For the family farm tax to become law, the House of Commons must hold a final vote on it and there must be a majority.
If the government is confident it will win the vote it will press on. The NFU is doing everything it can so that the current family farm tax plans are not voted into law at this point. If it does pass into law then it is extremely difficult to make any changes or reverse it.
The final stage of any bill's progress in Parliament is when the King gives royal assent. The bill then becomes an Act of Parliament.
King Charles III reads the King's Speech in the House of Lords Chamber during the State Opening of Parliament. Photograph: PA Images / Alamy
The farming fight continues
We know the general public is behind the British farming community and has backed NFU calls for a u-turn on the family farm tax.
With the legislation to introduce the tax not due until October 2025, the NFU will be keeping up the pressure in Parliament, in Whitehall and in the media about the hammer blow this tax will deal to farming families, after decades of tightening margins, record inflation, extreme weather and increased production costs.
