UK Government Proposes 20% Inheritance Tax on Farms

The UK government's decision to introduce a 20% inheritance tax on agricultural assets exceeding £1 million, starting in April 2026, has sparked significant concern among farmers and political leaders alike. Farmers, represented by various unions, argue that this 'family farm tax' threatens the viability of family businesses and could lead to a loss of land to corporate interests. Kemi Badenoch, the Tory leader, criticized the tax as creating uncertainty in the agricultural sector and pledged to reverse it if her party regains power, while Labour leader Sir Keir Starmer defended the government's agricultural budget increase. Multiple MPs, including Ben Maguire and Helen Morgan, have voiced strong opposition to the tax, warning it could significantly impact local farms and food security. The government claims that only about 2,000 estates will be affected annually, but many in the farming community believe the changes will hurt smaller family farms disproportionately. This ongoing debate highlights the tensions between agricultural policy and the economic realities faced by farmers in the UK.