UK Family Farms Face Financial Strain from New Inheritance Tax

Inheritance tax changes could severely impact small and medium-sized farms, threatening their viability and rural communities.

• From April 2026, farms valued over £1 million will incur a 20% inheritance tax, potentially eroding profits for a decade.
• The Country Land and Business Association warns that many family farms may become unviable due to the new tax policy.
• Government claims only a small percentage of farms will be affected, but industry analysis suggests a much larger impact.
• Critics argue the policy is poorly designed, disproportionately affecting tenant farmers and smaller operations rather than the wealthiest estates.
• Concerns are rising that these changes could lead to the sale of farmland to non-agricultural interests, altering rural landscapes.

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