Chancellor’s New Tax Move Leaves Farmers Feeling Tricked
What’s the deal? The Chancellor has just ripped out the inheritance‑tax hum‑puff for family‑run farms, meaning cash‑flow could start turning into a nightmare for thousands of green‑hands.
Why This Is a Big Deal for Farmers
Starting April 2026, the government will no longer exempt up to £1 million worth of agricultural and business assets from inheritance tax. That sounds harmless, until you remember that most farms rack up a few million pounds in assets.
- Take a typical farm worth £3 million. You’re looking at an IHT bill that applies a 50% relief, which ultimately translates into an effective 20% rate.
- That’s a hefty hit to the bottom line when the price of your own milk or grain is already climbing.
- Over a third of the UK’s 209,000 farms could hit the “cash‑flow crisis” threshold and be forced to close shop.
Farmers’ Take‑Down on the ‘Thievery’ Claim
Shadow Farming Minister Robbie Moore – who grew up on the farm – slammed the move as “catastrophic” for family barns.
“This is effectively thievery, giving the farming sector a rude slap in the face. It’s a gamble that will turn certainty into uncertainty,” Moore said to Sky News.
He warned that the lack of stable rules means investors can’t bank on a long‑term plan to rouse the harvest, which will ripple out to food‑security headaches and, inevitably, higher food prices.
Farm Blows Up on X
Jeremy “Clarkson Farm” Clackson, the Amazon Prime farm owner, took to X to share a silver lining:
“Farmers, you’ve been shafted today. Don’t despair. Hold tight for five straight years and the storm will pass,” Clackson wrote, hoping that the next election will change the game.
TV Host Backs the Farmers, Calls Out the Chancellor
Kirstie Allsopp, known for her “Location, Location, Location” flair, didn’t hold back:
“The Chancellor has fd farmers,” Allsopp declared. “This is absolutely unacceptable!”
What’s Next?
Farmers, industry groups, and the public are calling for a swift reversal. They want the government to keep the exemption, ensuring the farms that produce our bread, milk and veggies can survive without having to pay a “tax‑stamp” that looks like a February‑march drag‑and‑drop into a tax‑pit.
