The announcement that inheritance tax relief for farms in the UK will be limited to £1m has caused anger among farmers. The National Farmers’ Union has criticized what it calls a “disastrous budget” for family farms, accusing the government of taking away the next generation’s ability to produce British food and forcing farmers to sell land to pay inheritance tax. Many farmers and celebrities such as Kirstie Allsopp echoed these concerns on social media. However, the government maintains that it is still committed to supporting farmers and their role in feeding the nation.
Chancellor Rishi Sunak announced a change to the APR tax relief system on combined business and agricultural assets worth more than £1m. From April 2026, there will be a 50% relief at an effective rate of 20%. Small family farms, including land used for crops or rearing animals, farm buildings, cottages and houses, have long benefited from this tax relief system to be handed down through generations. Somerset farmer Richard Payne told the BBC that his son is considering an alternative career as the business will become “completely unviable” as a result of the tax change.
Fellow Somerset farmer Holly Purdey noted that longevity and generational thinking are often key motivators for farmers to care for the land, which could be lost as a result of the tax changes. She added that any forced sale of land from larger farms could also help more newcomers to get into farming. Victoria Vyvyan, president of the Country Land and Business Association, estimated that around 70,000 farms could be adversely affected by the £1m cap and called it a “betrayal”.
Tom Bradshaw, president of the National Farmers’ Union, described it as a “disastrous budget” for family farmers and accused the government of “shepherd[ing] the environment”. The government noted that the change was only expected to affect around 2,000 estates each year and said it was maintaining the £2.4bn farming budget for England in 2025/26. Food Security Minister Daniel Zeichner affirmed the government’s commitment to farmers and their role in feeding the nation, despite the criticism.
Overall, the change to APR tax relief has stirred up concerns about the future of British farming, with some arguing that it will force smaller family farms out of business, lead to more mega-farms and factory farming, and break the ability of large estates to be passed down through generations. While the government has assured farmers that it remains committed to supporting them, many remain skeptical about what the future may hold
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