A recent study shows that new inheritance tax rules will affect many farms in England and Scotland, sparking protests.
London: More than three-quarters of farms in England and Scotland will feel the impact of new inheritance tax rules. This has led to widespread protests from farmers.
Tractors have been seen on the streets in Northern Ireland. Farmers are protesting against the cap on Agricultural Property Relief (APR).
Starting April 2026, the first £1 million of combined business and agricultural assets won’t face inheritance tax. But anything over that will be taxed at 20% after a 50% relief.
According to the Agriculture and Horticulture Development Board (AHDB), about 42,204 out of 54,938 farms will be affected. That’s around 76.8% of farms in these regions.
Most affected farms focus on cereals or general crop production. The rest are mainly livestock producers or mixed farming operations.
AHDB analyst Tom Spencer noted that larger cereal and cropping farms are at higher risk. Single-person livestock farms are also vulnerable.
David Eudall, from the levy board, emphasized the need for farmers to understand how these changes will affect them. He encouraged farmers to seek expert tax and business planning advice.
Succession planning is now more crucial than ever for farming businesses. It’s important for farmers to review their situations and take necessary actions.
Meanwhile, shadow environment secretary Victoria Atkins called for the government to track farmer suicides. She wants to highlight the human cost of these policy changes.
Atkins criticized the government, saying that pensioners and family businesses are suffering due to poor economic decisions. She urged a full review of the new policy.
A government spokesperson reassured farmers of their support. They plan to invest £5 billion into farming over the next two years, the largest budget for sustainable food production in history.
They also aim to boost profits for farmers by supporting British produce and reforming planning rules to aid food production.
