Farmers urge PM to seek advice from us on inheritance tax
Farmer leaders have urged the Prime Minister to postpone changes to the agricultural inheritance tax while ministers consult with them.
Tom Bradshaw, president of the National Farmers Union (NFU), told MPs that farmers were ready to work with the government, later adding that there were “a number of ways” to make the policy “less bad”.
In another protest against October’s budget, protesters drove tractors into Westminster on Wednesday, while Liberal Democrat leader in the Commons Sir Ed Davey called on the PM to “change course and recognize the vital role that British family farms play”. called upon.
But Sir Keir Starmer insisted the “vast majority” of farmers would not be affected by the tax changes.
As a result of the Budget, from April 2026, inherited agricultural property worth more than £1 million, which was previously exempt, will be liable to inheritance tax (IHT) at 20% – half the normal rate.
Other allowances could allow a couple to live off a farm worth up to £3m.
But many farmers argue that although they may be rich in assets – in terms of their land and livestock – they are short of cash and the changes will force them to sell to pay the tax.
The farmer leader appeared before MPs at the Commons Environment, Food and Rural Affairs Committee on Wednesday.
Mr Bradshaw called for tax changes to focus on personal wealth, not business property, saying this would lead to a “very different proposal to what is on the table”.
“Our position is this: Let’s work with you to reach an outcome that works for everyone, rather than the blunt instruments we have today,” he told lawmakers.
Robert Martin, national chairman of the Tenant Farmers Association, said the committee’s plan to close a tax loophole – which allows wealthy people to avoid inheritance tax by buying agricultural land – would not work because of capital gains tax rollovers for farming businesses. The relief has been left in place. ,
Tax expert Dr Arun Advani, director of the think tank Centax, told the committee that the Budget measures would probably reduce land price inflation “slightly”, as the 20% IHT rate “is still more attractive than other types of properties”.
He said, “In this world you will still have people who want to buy farmland who are competing with actual farmers who are trying to expand their farms, who actually want to work the land. ”
In a letter to Sir Keir after the committee hearing, Victoria Vivian, chair of the Country Land and Business Association, said: “Let’s stop and think. Let’s not rush forward hoping against hope that it will be fixed or It will turn out differently.”
During Prime Minister’s Questions, Sir Ed called for a rethink of the policy, saying that the previous Conservative government had badly ruined family farms and now he felt the recent budget would be “the final blow”.
Sir Keir replied that the Government had invested a “record” £5 billion in farming over the next two years.
On IHT he said, “The threshold in a typical family case is £3 million and so the vast majority of farmers will be unaffected, despite fears from the opposite party (Conservatives)”.
The Prime Minister’s spokesperson later said that inheritance tax would not be reconsidered, adding, “We understand the strength of feeling about the changes, but we are clear that this will only affect a small number of properties”.
