THE MP for the North Cotswolds has warned that ‘prime arable land’ is likely to be taken ‘out of production’ amid changes to inheritance tax that impact farms.

Sir Geoffrey Clifton-Brown warned that hedge fund managers could buy up arable land if farmers choose to sell up to avoid paying IHT.

The government unveiled IHT changes that affect farms in the Budget in October.

Sir Geoffrey Clifton-Brown, MP for the North Cotswolds, told the House of Commons today (Wednesday, December 4): “What the government fails to answer is that when this land goes on the market, what kind of person will buy it?

“It won’t be the ones that have farmed the land all their life.

“It will likely be foreign investors and hedge fund managers.

“They will not have generations of knowledge to work this land and will likely take prime arable land out of production, as they could possibly make more money from alternatives.”

Agricultural property relief has enabled small family farms to be exempt from inheritance tax since APR was brought in in 1984.

However, from April 2026, inherited agricultural assets worth over £1 million will be liable to the tax at 20 per cent.

Treasury minister James Murray told the Commons: “The government’s commitment to farmers is steadfast.

“Farmers make an immense contribution to the UK economy and the nation’s food security.

“We recognise and respect the crucial contribution that farmers make to our country’s way of life.

“We must also recognise that this Government has come to power at a time when the state of our public services and the mess in which we found the public finances mean there was no way we could have left things as they were.

“Unlike the party opposite [the Conservatives], there was never any question of ignoring the £22 billion black hole we uncovered in the public finances.

“We had to bring the previous administration’s fiscal irresponsibility to an end.”

On how many farmers might pay APR on IHT, Mr Murray told the Commons: “It is not possible to accurately infer a future IHT liability from data on farm asset values.

“Any IHT liabilities that farming assets may face would be affected by who the owners are, the nature of ownership, how many owners there are, any borrowing they have and how they’ve planned their affairs.”