UK Inheritance Tax Changes Impact Farmers

The recent Budget changes to inheritance tax, particularly affecting agricultural land, are drawing significant criticism for potentially harming working farmers more than wealthy tax avoiders. Starting April 2026, farmers will face a reduction in inheritance tax relief, with properties valued over £1 million being taxed at a rate of 20% on the excess. Research indicates that a substantial portion of the estates impacted are owned by working farmers, contradicting the Treasury's claims that only a fraction would be affected. Experts warn that these changes could lead to increased suicides in the farming community, hinder food security, and drive up land prices as struggling farmers may be compelled to sell their properties. Environmentalists express concern that this could foster intensive farming practices detrimental to the UK's landscapes. Critics argue that the policy fails to distinguish between wealthy landowners and genuine farmers, potentially risking the viability of rural communities and landscapes.