UK Government Defends New Inheritance Tax on Farms

The UK government is set to implement changes to inheritance tax, particularly impacting farms valued over £1 million, starting in April 2026. Welsh Secretary Jo Stevens asserts that only the wealthiest farmers will be affected, claiming that 75% of farms will remain exempt from the new tax, which involves a 20% rate on assets exceeding the threshold. However, farming unions argue that this policy could devastate family farms, forcing many to sell assets to cover unexpected tax bills, as they are often land-rich but cash-poor. There is significant pushback from the farming community, with concerns that such changes could lead to a breakdown of family farm succession. Some political figures predict a potential reversal of these measures due to the backlash, likening it to previous controversial tax policies. Meanwhile, the government has paused some changes to farm inheritance tax reliefs after consultations revealed unintended consequences might disproportionately affect genuine farming enterprises.