(qlmbusinessnews.com Wed. 20th Nov, 2024) London, UK —
UK Farmers Rally Against Budget’s New Inheritance Tax Rules
Thousands of farmers gathered in London this week to protest against changes to inheritance tax on agricultural assets, which were announced in the latest Budget. Among those demonstrating on Whitehall was TV personality Jeremy Clarkson, who called the reforms “the end” for many farming families, urging the government to reconsider.
From April 2026, farms worth over £1 million will face a 20% inheritance tax on their value exceeding the threshold, a significant shift from the current exemptions. While married couples could potentially pass on up to £3 million tax-free, many farmers argue the changes unfairly target families who are asset-rich but cash-poor, leaving them at risk of selling their farms to cover tax bills.
“A Stab in the Back” for Farmers.
The National Farmers' Union (NFU) spearheaded the protests, with approximately 1,800 members lobbying MPs near Parliament. NFU President Tom Bradshaw described the changes as a betrayal of the farming community, accusing the government of breaking a longstanding post-World War Two agreement. He argued the reforms could force many farmers to abandon their livelihoods.
Bradshaw criticised Labour’s approach, stating, “If we earned fair margins from food production and contributed more taxes through profits, we’d welcome it. But the supply chain doesn’t give us enough to save for these new taxes.”
Rising Costs, Declining Profits.
Farming costs have soared in recent years, with pig farming up by 54%, cattle by 44%, and cereals by 43%. Meanwhile, Brexit-era subsidy reductions and stagnant profit margins have left many farms struggling. Government figures show an average farm made £45,300 in profit last year, though this may overestimate actual earnings.
The government estimates the new rules will affect around 500 estates annually, but the NFU and other industry bodies argue the figure could be far higher, potentially impacting 70,000 farms valued over £1 million. Critics warn this will encourage corporate buyouts, eroding the tradition of family-run farms.
Government Stands Firm.
Prime Minister Sir Keir Starmer defended the policy, claiming the “vast majority” of farms would remain unaffected. Speaking from the G20 summit in Rio de Janeiro, he argued that the changes target wealthier estates while allowing significant exemptions for smaller farms. He highlighted investments in rural communities, including £5 billion for food sustainability and farming over the next two years.
However, Environment Secretary Steve Reed faced backlash after dismissing farmers’ concerns as exaggerated, suggesting better tax planning could minimise their liabilities. Conservative leader Kemi Badenoch, addressing protesters, pledged to overturn what she called “the family farms tax,” a move that drew loud applause.
Jeremy Clarkson, who owns Diddly Squat Farm, criticised the complexity of avoiding the tax, saying, “Why should farmers have to jump through hoops to save their livelihoods?”
Farmers Fear for the Future.
Gloucestershire farmer David Barton, whose family has run a 400-cattle business since 1913, said the changes could leave his son with an £800,000 tax bill. Barton is now considering transferring his estate early, which may exempt it if he lives for seven years but said, “The Budget has ripped the heart out of us.”
Similarly, Jen, a seventh-generation Yorkshire farmer, said the new rules could force her and her brother to sell their family farm, which has been in the family for over a century. “It’s not just our livelihood; it’s our life,” she said.
Critics, including the Liberal Democrats, have dismissed the government’s figures as “utter rubbish,” arguing the tax disproportionately harms farming families while benefiting corporate buyers.
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