THE FINAL STRAW FOR FARMERS

Deep dive into the threat of inheritance tax

By Venetia Carpenter

THERE are those in society who see farmers as filthy rich people who should be taxed on their wealth.

I have lost count of the number of times I have seen or heard the words “I’ve never seen a poor farmer”. These people truly do not understand the situation that farmers and, as a result, all of us, are facing.

As someone from a farming family, I could introduce you to any number of poor farmers. These are people who are struggling to keep their heads above water financially. Owning a farm worth more than £1million does not make you rich. The land may be worth money right now but the farmers need that land to grow food and/or run their livestock. This is an asset rich but cash-poor business. Tom Bradshaw (below), President of the National Farmers’ Union (NFU), said of farmers “the feelings of anger, betrayal and despair are palpable. Just because a farm is an asset, it doesn’t mean they are wealthy”.

Inheritance Tax

Currently, farmers get 100 per cent agricultural property relief but, from April 6 2026, the full relief will be restricted to the first £1m of combined agricultural and business property and, subject to any spousal exemptions and nil rate bands that some may be able to access to increase this relief, inheritance tax will be paid at a rate of 20 per cent on anything over £1m.