british-farmers-warn-new-tax-rules-put-national-food-production-at-risk

British farmers warn: New tax rules put national food production at risk

 • 517 views

British farmers dispute governments claim that inheritance tax changes will affect only wealthy estates. National Farmers Union says these reforms might impact three-quarters of UK food production

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

Popular

News by theme