Farmers Protest New Inheritance Tax Rules as Debate Over Impact Intensifies

Government claims only 500 estates annually will be affected, while farming groups argue the changes could harm tens of thousands over time.

The UK government plans to impose a 20% inheritance tax on agricultural and business assets exceeding £1 million starting in April 2026, with allowances potentially raising the threshold to £1.5 million or £3 million for couples.
Government estimates suggest only 500 agricultural estates annually will be impacted, based on historical tax relief claims, but farming groups dispute this figure as misleading.
The National Farmers’ Union (NFU) and other groups argue that up to 75% of commercial farms could face tax liabilities, citing higher farmland values and excluding smaller, non-commercial estates from their calculations.
The Country Land and Business Association (CLA) claims that as many as 70,000 farms could be affected over a generation, though this figure reflects potential long-term impact rather than annual cases.
More than 10,000 farmers protested in Westminster this week, with critics warning that the tax changes could impose unmanageable financial burdens on medium-sized working farms despite a 10-year payment option.