Jane Dodds has asked the Welsh Government what assessment it has made of the impact of inheritance tax changes on family farms in Wales.

The Mid and West Wales MS said at the Senedd that she recently met five Brecon and Radnorshire farmers in Hay, and every one of them was going to be affected by this new tax.

Ms Dodds said they had done a detailed analysis, with the backing of accountants, of 15 farms in Brecon and Radnorshire. All but one of them were affected by the new rules.

Farms are currently exempt from inheritance tax but, from April 2026, any inherited properties or land worth over £1m will be taxed at a rate of 20 per cent.

For many years, the tax relief has allowed small family farms, including land for crops and livestock, as well as farm structures, cottages, and homes, to be passed down through generations.

Ms Dodds said: “This policy is discriminatory against the widowed, the widower, people who are suffering from illnesses that may lead to their early death, and those who are old.

“This is an appalling policy, and one that I think the Welsh Government does not need right now as it introduces the sustainable farming scheme.”

Ms Dodds asked First Minister, Eluned Morgan, what she is doing to represent our views in Wales.

She asked her: “Have you met with Keir Starmer, to tell him the views of Welsh farmers on this family farm inheritance tax? That's a yes or a no.

“And could you tell us, if you have, what his response was, and, if you haven't, why not, and when?”

Ms Morgan said inheritance tax is controlled by the UK Gvernment.

She told Ms Dodds: “Figures from HM Treasury suggest that most farms will be unaffected by the changes announced by the UK Government.

“I have ministers who do some of that connecting on my behalf, and I can assure you that the Deputy First Minister has raised this issue directly with his counterpart in the UK Government.

“I recognise that there is a disconnect between what the farmers' unions in Wales are saying and what the Treasury is saying.

“There absolutely needs to be a dialogue. There have been a number of representations made to the UK Government.

“The Deputy First Minister has directly raised the issue and has sent a further letter to the UK Government reminding them of their commitments to consider the views of Welsh farmers.

“That has been followed up, and it is important that the voice of the agricultural community in Wales is heard, despite the fact that that is a UK Government initiative.

“We are facilitating a meeting and trying to make sure that their voices are heard.”

Ms Morgan said she wanted to give Ms Dodds some reassurance around the sustainable farming scheme.

She said: “There has been an assurance around how this will impact on the SFS, and we have been given guarantees and assurances on that.”