What Are the Changes?

The government announced that from April 2026, agricultural assets worth more than £1 million will be subject to a 20% inheritance tax. According to Treasury figures, the majority of farmers will remain unaffected, as the average farm’s value falls below the new threshold when exemptions for spouses and children are applied.

Prime Minister Sir Keir Starmer has defended the policy, stating:

“For a typical case, including exemptions, inheritance tax would only apply on estates exceeding £3 million. This means the vast majority of farms and farmers will not be impacted.”

Despite these assurances, many in the farming community argue that the policy will have a disproportionate effect on family-run farms, which make up approximately two-thirds of UK agriculture.

Why Are Farmers Concerned?

Critics warn that the inheritance tax hike could jeopardize the viability of family farms, which often operate on tight margins. Data from the Department for Environment, Food and Rural Affairs (Defra) suggests that 66% of farm businesses exceed the £1 million threshold, challenging the Treasury’s claim that most farms will escape the tax.

Baroness Mallalieu, president of the Countryside Alliance, expressed skepticism about the government's projections, stating:

“The figures differ between the Treasury, Defra, and the National Farmers’ Union (NFU). Without a thorough impact assessment, it’s hard to predict the unintended consequences of these changes.”

Farmers also fear the changes could lead to increased financial strain, reduced investment in agricultural sustainability, and, ultimately, food shortages in the UK.

The Upcoming Protest

Organized by the Farming Forum, the protest has been relocated from Trafalgar Square to Westminster due to the expected turnout. Farmers and supporters will gather at Richmond Terrace near Victoria Embankment Gardens at 11 a.m. The event will feature speeches by NFU President Tom Bradshaw and other key figures, as well as a symbolic procession led by children on toy tractors to emphasise the generational impact of the tax changes.

Broader Political Reactions

The debate intensified following comments by Labour strategist John McTernan, who controversially claimed that family farming is an industry the UK could do without. Starmer has since distanced himself from these remarks, reiterating the government’s commitment to supporting farmers and the agricultural sector.

Additionally, the government has highlighted its £5 billion investment in farming over the next two years, along with funds allocated for managing flooding and disease outbreaks. However, these measures have done little to reassure those within the farming community.

What’s Next?

As farmers prepare to voice their opposition, the NFU is also lobbying MPs to reconsider the policy. The protest underscores broader concerns about the future of farming in the UK, with many calling for more targeted support to ensure the sustainability of family farms. This issue remains a contentious topic, with both sides presenting conflicting data and arguments. The demonstration in Westminster is expected to serve as a focal point for the ongoing debate over the inheritance tax changes and their implications for Britain’s agricultural landscape.s

Farmers across the UK are planning to stage a large-scale protest in London on November 19th, voicing their opposition to changes in inheritance tax announced in last month’s Budget.

The demonstration, expected to draw thousands, highlights concerns about the potential impact of these changes on family farms, a cornerstone of Britain’s agricultural sector.

Inheritance Tax Protests

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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