British farming faces big changes as new inheritance-tax rules shake up the industry. Tom Bradshaw from National Farmers Union points out a math problem: while the Treasury says only 25% of farms will pay more tax these farms make most of UKʼs food
The Treasury set a one-million pound cut-off for tax-free inheritance starting next spring; however NFUʼs data shows different numbers According to Bradshaw these larger farms (which government wants to tax) produce about 75% of British food
A farm thats worth more than £1m will have to pay a 20% tax starting in spring-2025 (you can pay it over 10 years if needed). The problem isnt just numbers – its about how farms work: “A working farm needs to be big to stay in business but that doesnt mean its making lots of money“ Bradshaw explains
The changes bring up some real-world worries:
- Less money for farm improvements
- Possible land sales to pay taxes
- Harder to pass farms to next generation
- Food security risks
- Mental health impact on farmers
Steve Reed Environment Secretary met with NFU leaders on 11/04 to talk about these issues. The government keeps saying its protecting small farms but NFU disagrees: “Theyʼre actually helping people with small hobby-farms while hurting real food producers“
The government defends its position: “We give £5bn to farming over two years; most farms wont be affected by new rules. Its a fair way to support both farming and public services“. HMRC numbers show about 500 farms worth over £1m would have paid this tax in 21-22 if rules were different back then