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What are the new inheritance tax rules for farmers?
Starting April 2026, the UK government will impose a 20% inheritance tax on agricultural assets valued over £1 million. This marks a significant shift from previous exemptions that many farmers relied on, raising concerns about the financial viability of family farms.
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How will these changes affect family farms in the UK?
The new inheritance tax rules are expected to disproportionately impact smaller family farms, potentially forcing them to sell land or assets to cover the tax. Critics argue that this could lead to the fragmentation of family businesses and a loss of agricultural heritage.
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What are the arguments from farmers against the tax?
Farmers argue that the new tax will threaten their livelihoods and food security. Many believe that the government has not adequately consulted with rural communities, and they fear that the tax will lead to increased financial strain on family farms, pushing them out of business.
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What is the potential impact on food security?
The potential impact on food security is a major concern among farmers and agricultural experts. With many family farms at risk of closure due to the new tax, there are fears that this could lead to reduced domestic food production and increased reliance on imports.
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How many farms will be affected by the new inheritance tax?
Estimates suggest that up to 70,000 farms could be affected by the new inheritance tax rules. However, some reports indicate that the actual number of farms impacted annually may be closer to 500, leading to debates about the true implications of the tax changes.
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What are the government's justifications for the tax changes?
The government, represented by Prime Minister Keir Starmer, has defended the changes by stating that the typical threshold for inheritance tax will be around £3 million when considering exemptions. However, many farmers remain skeptical about the fairness and practicality of these new rules.