What's happened
Farmers in the UK are protesting against new inheritance tax rules set to take effect in April 2026. The changes will impose a 20% tax on agricultural assets valued over £1 million, which previously enjoyed exemptions. Critics argue this will threaten family farms and food security.
Why it matters
What the papers say
According to The Guardian, the inheritance tax changes have sparked protests among farming families, with many fearing they will be forced to sell land to pay the new 20% tax on agricultural property above £1 million. The article highlights that the previous exemption for farms has been a significant relief for many families, and the abrupt change has led to calls for more consultation before such measures are enacted.
BBC News reports that while estimates suggest up to 70,000 farms could be affected, the actual number of farms impacted annually may be closer to 500. This discrepancy has fueled debate among farming groups and economists about the real implications of the tax changes. Liberal Democrat leader Sir Ed Davey emphasized the need for the government to listen to rural communities, suggesting that the changes could harm family businesses and food security.
The Mirror adds that Prime Minister Keir Starmer has defended the government's investment in farming, asserting that the typical threshold for inheritance tax will be around £3 million when considering exemptions. However, many farmers remain skeptical, fearing that the new rules will disproportionately affect smaller farms and lead to their fragmentation.
How we got here
The UK government announced changes to inheritance tax in Chancellor Rachel Reeves's recent budget. Starting April 2026, inherited agricultural assets exceeding £1 million will incur a 20% tax, prompting backlash from farming communities concerned about the impact on family businesses.
Common question
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Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
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