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What are the new inheritance tax changes for farmers?
The UK government has introduced a 20% inheritance tax on agricultural estates valued over £1 million, effective from April 2026. This change affects agricultural property relief (APR) and has sparked significant backlash from the farming community, who fear it could jeopardize the viability of family farms.
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How are farmers reacting to the inheritance tax?
Farmers are expressing strong opposition to the new inheritance tax changes. Many believe that the tax will threaten the survival of family farms, with estimates suggesting that up to 70% of farms could be impacted, contrary to government claims that only 27% would be affected. The National Farmers' Union (NFU) has labeled the budget as 'disastrous.'
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What are the potential consequences for family farms?
The new inheritance tax could lead to significant financial strain on family farms, which are often asset-rich but cash-poor. Farmers worry that the tax may force them to sell their land or operations to corporate entities, ultimately leading to the decline of family-run agriculture in the UK.
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What protests are planned in response to these changes?
In response to the inheritance tax changes, farmers are organizing protests to voice their concerns. These demonstrations aim to raise awareness about the potential negative impacts of the tax on family farms and to urge the government to reconsider its approach to agricultural taxation.
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What did government officials say about the inheritance tax changes?
Environment Secretary Steve Reed defended the new budget, describing it as a 'fair and balanced approach' that aims to protect family farms while addressing public service funding needs. However, many farmers and agricultural leaders remain skeptical of this claim, citing the potential risks to their livelihoods.
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How can farmers prepare for the inheritance tax changes?
Farmers can start preparing for the upcoming inheritance tax changes by consulting with financial advisors and estate planners. Understanding the implications of the new tax structure and exploring options for asset management can help mitigate the potential impact on their farms.