Thousands of farmers protested in London against proposed changes to inheritance tax for agricultural assets, with TV presenter Jeremy Clarkson joining the demonstration and declaring “it’s the end” for farmers.
Under the new rules, set to take effect from April 2026, inherited agricultural assets worth more than £1 million will be liable for inheritance tax at 20% – half the usual rate. While the government claims only the wealthiest 500 estates will be affected annually, farming organizations estimate up to 70,000 farms could be impacted.
National Farmers’ Union (NFU) president Tom Bradshaw described the tax changes as destructive and a “stab in the back” for farmers. He argued that farmers are already struggling with rising costs, with pig farming expenses increasing by 54%, cattle by 44%, and cereal by 43% since 2019. Government research suggests an average farm made a profit of about £45,300 last year.
Many farmers argue that while they are asset-rich in land and livestock, they are cash-poor and would be forced to sell their farms to pay the inheritance tax. David Barton, a Gloucestershire livestock farmer, estimates his 400-cattle business could face an £800,000 tax bill, potentially forcing him to gift his estate.
Jen, a 24-year-old seventh-generation farmer from Yorkshire, said she and her brother would need to sell their family farm to pay approximately £1.2 million in inheritance tax. She emphasized that farming is more than a business – it’s a lifestyle passed down through generations.
The government maintains that most farms will be unaffected. The inheritance tax rules allow for significant tax-free allowances:
– No tax on the first £325,000 of property value
– Married couples can pass on an additional £1.325 million tax-free
– An extra £175,000 tax-free allowance for main residences passed to children or grandchildren
Prime Minister Rishi Sunak and Labour leader Sir Keir Starmer both claim the vast majority of farms will not be impacted. Starmer highlighted a £5 billion pledge for farming and food sustainability.
Conservative Party leader Kemi Badenoch publicly supported the farmers, pledging to reverse what she called the “family farms tax”. The Liberal Democrats also criticized the proposal, with environment spokesman Tim Farron calling it “cruel, unfair, and incredibly stupid”.
Environment Secretary Steve Reed defended the policy, suggesting farmers could plan their tax affairs to limit liability. He acknowledged the changes might be “unsettling” but insisted most farmers would not face significant increases.
The protest highlighted the ongoing challenges facing British agriculture, including declining subsidies since Brexit, increasing production costs, and concerns about the long-term sustainability of family farms.
Despite the widespread opposition, the government has stated it will not reconsider the inheritance tax changes, describing the decision as “fair and proportional”.
