Thousands of farmers protested in London against proposed changes to inheritance tax for agricultural assets, with TV presenter Jeremy Clarkson among the demonstrators. The government’s Budget announcement will introduce inheritance tax on agricultural assets worth more than £1m from April 2026, ending their previous tax-exempt status.
The National Farmers’ Union (NFU) president Tom Bradshaw described the changes as destructive and a “stab in the back” for farmers. While the government claims only the wealthiest 500 estates will be affected annually, the NFU and Country Land and Business Association estimate up to 70,000 farms could be impacted.
Farmers argue that while they are asset-rich, they are cash-poor and may be forced to sell their farms to pay the new tax. David Barton, a Gloucestershire livestock farmer, estimates he could face an £800,000 tax bill that would significantly impact his family’s generational farm.
A 24-year-old seventh-generation farmer from Yorkshire explained that she and her brother would need to pay approximately £1.2m in inheritance tax, potentially forcing them to sell the family farm they’ve been passionate about since childhood.
The new rules would impose a 20% inheritance tax on farm values above £1m. However, various allowances could mean a married couple could pass on a farm worth up to £3m tax-free. The government maintains that the “vast majority” of farms will be unaffected.
The agricultural sector has faced significant challenges in recent years. Since 2019, farming costs have risen dramatically: pig farming costs increased by 54%, cattle by 44%, and cereal by 43%. Simultaneously, farming subsidies have declined since Brexit.
Government research suggests an average farm made a profit of about £45,300 last year, though this figure may be overstated. Between 2021 and 2022, only 117 farms valued over £2.5m were inherited.
Environment Secretary Steve Reed defended the policy, suggesting farmers can plan their tax affairs to limit liability. He acknowledged the changes might be “unsettling” but insisted most farmers would not face significant increases.
Conservative Party leader Kemi Badenoch joined the protest, pledging to reverse what she called the “family farms tax.” The Liberal Democrats criticized the policy, with environment spokesman Tim Farron calling it “cruel, unfair, and incredibly stupid.”
Prime Minister Rishi Sunak, speaking from the G20 summit, maintained that the “vast majority” of farms would be unaffected. Opposition leader Sir Keir Starmer supported the government’s stance, emphasizing that the tax would only apply to farms and assets over £3m.
The government has remained firm, with the prime minister’s spokesperson stating they will not reconsider the policy, believing it to be a “fair and proportional approach.”
