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What are the new inheritance tax changes for farmers?
The UK government has introduced a 20% inheritance tax on agricultural assets exceeding £1 million. This is the first time such a tax has been applied to farmland since 1992, and it has raised alarms among farmers who fear it could threaten the viability of family farms.
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How will the 20% tax on agricultural assets affect family farms?
Farmers are concerned that the new tax will significantly impact their ability to pass down family farms to the next generation. The National Farmers' Union warns that this tax could lead to the sale of farms to cover tax liabilities, jeopardizing the future of family-run agricultural businesses.
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What are farmers planning for the protests on November 19?
Farmers across the UK are mobilizing for protests scheduled on November 19 to voice their opposition to the inheritance tax changes. The protests are expected to draw large crowds, reflecting the widespread anger within the agricultural community over the perceived unfairness of the new tax.
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What are the potential long-term effects on food security in the UK?
The National Farmers' Union has expressed concerns that the inheritance tax changes could lead to a decline in family farms, which are crucial for maintaining food production in the UK. If family farms are sold off or become unviable, it could have serious implications for food security in the country.
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How has the government responded to farmers' concerns?
In response to the backlash, the government maintains that most farms will be unaffected by the new tax changes. Chancellor Rachel Reeves has described the changes as 'fair and proportionate,' but many farmers dispute this claim, arguing that the tax will devastate their livelihoods.
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What other factors are affecting the UK farming industry?
In addition to the inheritance tax changes, farmers are facing rising production costs and economic uncertainty, which have compounded their challenges. The recent economic growth figures, showing only a 0.1% increase, further highlight the difficulties within the agricultural sector.