Source · Select Committees · Welsh Affairs Committee
2nd Report - Farming in Wales in 2025: Challenges and Opportunities
Welsh Affairs Committee
HC 785
Published 12 November 2025
Recommendations
15
Accepted in Part
Intensify efforts to establish UK-EU SPS zone and publish a roadmap by May 2026.
Recommendation
The UK Government must intensify efforts to fully establish an SPS zone with the EU, as a key step towards reducing trade friction for Welsh agricultural exports. We call on the Government to publish a roadmap for how they plan …
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Government Response Summary
The government states it is committed to working with the EU to advance an SPS agreement, describing it as a central element of their work to reduce agri-food trade friction and cut costs. However, the response does not commit to publishing a roadmap for how they plan to establish the SPS zone by May 2026.
Wales Office
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Conclusions (2)
4
Conclusion
Accepted in Part
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 …
Government Response Summary
The government acknowledges concerns by increasing the 100% relief allowance for agricultural property relief from £1 million to £2.5 million, allowing couples to pass on up to £5 million tax-free, and refers to a published note detailing the reforms.
6
Conclusion
Accepted in Part
We are also concerned that the change in policy may have a disproportionate impact on elderly farmers or those with terminal illness who have arranged their affairs on the basis that their estates would not be subject to IHT, and will not have an opportunity to change their succession arrangements …
Government Response Summary
The government acknowledges concerns by increasing the 100% relief allowance for agricultural property relief from £1 million to £2.5 million, allowing couples to pass on up to £5 million tax-free, following feedback from the farming community.