Britain’s top supermarkets are calling for a pause to upcoming inheritance tax changes for farmers.

Aldi, Asda, Lidl, Morrisons, and Tesco are all backing the National Farmers’ Union (NFU), which has urged the government to halt plans for restrictions to inheritance tax relief for farms.

Agricultural property relief (APR) is a type of inheritance tax relief that reduces the amount of tax that farmers and landowners must pay when farmland is passed to the next generation.

The new plans, outlined in chancellor Rachel Reeve's Autumn Budget, will see 100 per cent relief from inheritance tax restricted to the first £1 million of combined agricultural and business property from 6 April next year.

Above this, landowners will access 50 per cent relief from inheritance tax and will pay inheritance tax at a reduced effective rate up to 20 per cent, rather than the standard 40 per cent.

This tax can be paid in instalments over 10 years interest free, rather than immediately, as with other types of inheritance tax.

“British farmers and suppliers are the lifeblood of our business," said an Aldi spokesperson. "We are proud of our support for the UK farming community and of the fact that 100 per cent of our fresh everyday beef, pork, poultry, eggs, butter, milk and cream is British."

They continued: "We all need a farming sector that can confidently invest in its future and continue to produce high-quality British food."

Budget supermarket rival Lidl also said that it was concerned that changes to the tax regime will impact farmer and grower confidence, holding back the investment needed to "build a resilient, productive and sustainable British food system".

"Providing security and long-term investment for British agriculture is key to helping ensure that farmers can continue to produce affordable and increasingly sustainable food for generations to come," the company added.

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