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The National Farmers’ Union (NFU) has criticized the UK government for a “betrayal” against farming communities as thousands prepare to rally against proposed changes to inheritance taxes on farms. At present, farms worth over £1m ($1.4m) are excluded from paying inheritance taxes, with that threshold increasing to £2m ($2.8m) for married couples. However, under new plans first announced in the 2021 budget, the rate would fall to 20% for those who inherit assets over £1m ($1.4m) – half the rate on assets under that threshold – from April 2026.
The NFU gathered 1,800 members in London for a mass lobby of MPs, with more than 10,000 people having registered for the wider protest at Richmond Terrace, Whitehall. Organisers confirmed that the event would be peaceful. Speakers at the rally are expected to include farmer and broadcaster Jeremy Clarkson. However, farmer co-organiser Staffordshire Clive Bailye warned that there could be future, more direct action protests by some farmers.
The government has maintained that the change would affect some of the UK’s wealthiest landowners, claiming fewer than 500 farms per year would be affected. However, farming organisations argue that up to 70,000 farms could be impacted. Combining tax reliefs and exemptions could allow up to £3m ($4.2m) to be passed on free of inheritance tax, and any bill could be paid in instalments across ten years.
Farmers have voiced concerns that, as their businesses were asset-rich but often cash-poor, rapid sales following death would be required to meet inheritance tax obligations. According to Gloucestershire livestock farmer David Barton, whose 265-acre farm has been in his family since 1913 and estimates the value of his 400-cattle business at around £5m ($7m), the charge could see his son facing a bill of £800,000 ($1.1m) unless they gift the estate or undertake a rapid sale. Barton suggests the changes could lead to small farms like his being ultimately sold off to wealthy investors
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