Recommendation 4

Impact Assessments based on farm valuations may offer a general indication of how many farms could potentially exceed the £1 million Inheritance Tax (IHT) threshold, however such assessments are limited. Without access to detailed information on individual farm circumstances, such as estate ownership structures, succession plans, and gifting arrangements, these estimates lack precision and risk being misleading. We acknowledge that relying solely on farm valuation-based data could result in an inaccurate picture of the true impact of the IHT reforms on Welsh farming communities. (Conclusion, Paragraph 50) 40