UK Farmers Protest Inheritance Tax Changes Targeting Agricultural Assets

New rules set to impose a 20% tax on farms worth over £1 million by 2026 face backlash from farmers, councils, and experts warning of financial strain on family farms.

The UK government plans to introduce a 20% inheritance tax on agricultural and business assets exceeding £1 million starting in April 2026, ending previous exemptions.
Farmers and councils, including Cornwall Council, warn the policy could force family farms to sell land, jeopardizing their viability and the 'Cornish way of life.'
The Institute for Fiscal Studies (IFS) suggests adjustments, such as allowing unused tax allowances to be transferred between spouses and offering a grace period for older farmers.
While the government estimates fewer than 500 farms annually will be affected, farming groups argue that up to 75% of family farms could face financial strain due to being asset-rich but cash-poor.
The policy aims to target wealthy investors using farmland to avoid taxes, but critics say it disproportionately impacts working farmers and risks harming food production.