Industry continues to battle against ‘unjust’ inheritance tax

• Treasury refuses to listen to farmers

• Government ‘no interest’ in moving

• Leaders propose compromise tax

Industry leaders have pledged to fight on after the Treasury again refused to back down on plans to impose inheritance tax in farmers.

It came after Treasury minister James Murray summoned farming representatives to a London meeting – only to tell them that the government was determined to impose 20% inheritance tax on farm assets worth more than £1m from April 2026.

Blunt refusal

NFU president Tom Bradshaw said the government’s blunt refusal to accept any compromise would have a devastating impact on UK farming families and the nation’s food security.

Speaking after the meeting, Mr Bradshaw said: “Disappointed doesn’t cover how I feel after this meeting. Today, we have repeated our concerns about the impact on farming families – they don’t care.

“On the impact on families who can’t afford vast tax bills coming their way on the death of a loved one – they don’t care. On the elderly, who feel they are now a burden on their family – the most vulnerable people in our farming community – they don’t care.”

No interest

Farm leaders from across the UK attended the London meeting. They included Country Land and Business Association president Victoria Vyvyan, Tenant Farmers Association chief executive George Dunn and NFU Scotland president Andrew Gannon.

Also in attendance were farm minister Daniel Zeichner and Treasury officials. Despite presenting alternative proposals, the farming delegation was firmly told that the government had no interest in compromise.

Jeremy Moody, chief advisor to the Central Association of Agricultural Valuers, said many farms would have to sell off land and other assets to pay for the tax. This would render the rest of their businesses unviable.

Economic damage

CLA president Victoria Vyvyan said: “The Treasury was simply going through the motions and showed no interest in farming or family businesses, and the economic damage that they are inflicting.

“The CLA could not have made the facts clearer to the Treasury: this inheritance tax policy is already inflicting damage on the economy and is likely to end up hitting tax revenues.”

Thanking the 275,000 people who have so far signed a petition against the tax, Mr Bradshaw said further protests and rallies would call on the government to change its mind and secure a future for family farms.

The government argues that its approach is fair and balanced. It says farmers will be paying a reduced inheritance tax rate of 20%, rather than the standard 40% for other businesses, and payments can be spread over 10 years, interest-free.

‘Clawback’ mechanism rejected by Treasury

The inheritance tax compromise proposed by farm leaders is based on a clawback mechanism which the NFU says will raise revenue without damaging family farms.

“Put simply, farmers don’t get money when they inherit, they get the farm, the business asset, and often the debt,” said NFU president Tom Bradshaw. “Any money they do get, they get when they sell.”

The NFU compromise, which is based on this premise, was suggested by tax experts. It means government will still receive its planned tax income – but inheritance tax would be paid only if an inherited farm is sold, rather than when it is  inherited.

“Crucially, this would allow family farms that want to continue to produce the nation’s food to do so, while giving the Treasury what it wants,” said Mr Bradshaw.

It was wrong for the government to argue that the £500 million raised by the tax was needed to rescue the NHS, added Mr Bradshaw.

“This amount will fund the NHS for a day,” he said. “ It’s disingenuous for ministers to repeat this untruth.”