The recent decision by the Chancellor to remove the inheritance tax exemption from farmers has sparked outrage in the farming community. Many farmers fear that this change could have catastrophic consequences, potentially leading to extortionate tax bills and even forcing some farms to go bust.
The new IHT change, which will come into effect in April 2026, means that family-owned and run farms will no longer be exempt from inheritance tax on assets over £1 million. While some relief will still be provided, many farms are worth far more than this threshold, leaving farmers facing a significant tax burden.
Shadow Farming Minister Robbie Moore, himself coming from a farming background, has been vocal in his criticism of the government’s decision. He described the move as “effectively thievery” and warned of the uncertainty it creates for farmers in terms of land management and investment.
The potential impact of this change on food security and prices has also raised concerns within the industry. With more than a third of the UK’s farms at risk of going under, the future of family farms looks uncertain.
Public figures such as Jeremy Clarkson and Kirstie Allsopp have also weighed in on the issue, with Clarkson expressing solidarity with farmers and Allsopp accusing the Chancellor of betraying them.
In light of these developments, it is clear that the government’s decision has struck a nerve within the farming community. The implications of this change go beyond just financial concerns, as it could have far-reaching effects on the future of agriculture in the UK.
As farmers grapple with the uncertainty brought about by this decision, it is crucial that their voices are heard and their concerns addressed. The fate of family farms hangs in the balance, and it is essential that measures are taken to ensure their survival and prosperity in the years to come.