Calls Grow for UK Government to Rethink Inheritance Tax Changes as Welsh MS Raises Alarm
Siân Gwenllian MS has launched a campaign to draw attention to what she calls a “fundamentally unfair” aspect of the UK Government’s planned changes to Inheritance Tax relief, warning that they will disproportionately harm farming widows across Wales.
Speaking in the Senedd, the Arfon MS said:
“One practical way of demonstrating support for family farms would be for you to urge the Labour Government in London to look again at the changes to inheritance tax that are proposed. It’s come to my attention that the changes to relief will have a disproportionate impact on women—women who are farmers’ widows—because the relief of the husband who has passed away will not be transferred to the widow to provide double the relief. Now, I’m sure that you will agree that that is fundamentally unfair.”
“The families have lost out on opportunities to plan their estates and to draw up wills that would provide certainty for children for the future. So, will you pursue this specific point with the Labour Chancellor in Westminster? I’m sure that you would agree that this is a matter of equality for women in Wales that requires your attention and that of the Government.”
In response, First Minister Eluned Morgan MS acknowledged the concern:
“I haven’t heard that particular aspect referred to before and, therefore, I will have discussions with the Minister here before seeing if we need further discussion, just so that they are aware of that particular aspect on the inheritance tax.”
In a follow-up question in the Senedd, Gwenllian pressed the Welsh Government on its next steps:
“At the end of April, I asked the First Minister about an issue that had been brought to my attention by constituents on the disproportionate impact of the changes to inheritance tax on farm widows, given the changes to relief. This is because the deceased husband’s tax relief wouldn’t be transferred to the widow in order to provide double relief at the time of the widow’s death. And, of course, it works the other way around, too, namely if the wife died, then the widowed man wouldn’t get that relief either.”
“These families—and there are many of them in my constituency—have therefore missed out on opportunities to plan their estates and to draw up wills that would provide assurances to their children for their future, and therefore assurances for the future of these family farms.”
Huw Irranca-Davies MS confirmed that a meeting was being arranged to further discuss the issue:
“I note that you had, indeed, raised this with the First Minister before, and I think that the intention is, Siân, to arrange a meeting, possibly with you and the Cabinet Secretary for Finance and Welsh Language, who has that direct line in to dialogue with the Treasury as well.”
He also noted that:
“Farming Connect have had a series of workshops right across Wales… So, Farming Connect is also providing access to facilitated family succession meetings, succession reviews, to understand the tax implications and subsidised business and legal advice on this as well.”
In a detailed letter to the First Minister, Gwenllian described the core issue:
“It appears that the upcoming changes to Inheritance Tax relief, due to come into force in April 2026, will disproportionately and adversely affect farming widows… This creates a deeply unfair situation for many widows who inherited their husbands’ estates in good faith, unaware of future changes to tax law.”
“There is significant concern within rural communities that these tax changes, aimed at closing loopholes exploited by wealthy investors, have overreached and are now harming legitimate, working family farms across Wales.”
“Given the widespread anxiety these changes are causing, I am also keen to understand what steps the Welsh Government is taking to support farming families. Is there, for instance, provision for quick access to mental health support, targeted information campaigns, or access to free professional estate planning advice?”
Gwenllian continues to urge both the Welsh and UK Governments to take the concerns seriously, and is pushing for an urgent reassessment of the proposed policy and its gender and rural impact.
