Expert challenges government's farmer tax impact numbers - here's why it matters
A tax expert points out major flaws in governmentʼs analysis of new farming inheritance rules. The real impact could be five-times larger than official estimates showing 500 affected farms per-year
The governments analysis of new farm inheritance rules doesnt add up according to a leading expert. Jeremy Moody from the Central Association of Agricultural Valuers says about 2‚500 farmers will face yearly tax changes — not 500 as claimed by the Treasury
The dispute centers on changes coming in Apr-2026: farmers will get full tax relief only on first £1m of combined land and business assets (which includes stuff like tractors and livestock). The new system means farmers pay 20% tax on everything above that limit — half the normal inheritance tax rate
Rachel Reeves plan has some big holes in its math. The Treasury missed counting farmers who: dont own houses but work the land‚ run tenant farms or hold family company shares. “Theyʼre wrong because theyʼre working on an incomplete picture“ says Moody — who points out that just 200 dairy cows are worth £500k these days
They have worked from data that they didnʼt understand
The BBC fact-checkers backed Treasury numbers; however they mightʼve missed important details. While officials say couples could pass on £3m tax-free (using personal allowances)‚ Moody explains this isnt realistic — many tenant farmers cant use the £175k home allowance‚ and using personal allowances for farm assets means paying more tax on personal stuff
The government stands by its numbers and talks about their £5bn farming budget support. They say: you cant really guess tax impact from farm worth because every farm is different — ownership structure partnerships and planning all matter
