Under the government’s changes, inherited agricultural assets worth more than £1m will be liable to tax at 20%. Farmers worry that government changes to inheritance tax rules will make many businesses unprofitable.
In November, a UK farmers’ protest in 2025 made thousands of British farmers gather in Westminster. They protested the Labour government’s decision to impose an inheritance tax on their assets for the first time in over three decades. One of the protest’s organizers warned that the government’s stance could lead to a “food crisis”. It will make it more difficult for individuals to invest in agriculture. In an interview with the Independent, she stated, “The government is marching into a food crisis.”
Inheritance Tax Rules: Less Food, More Crisis
Under the government’s changes, inherited agricultural assets worth more than £1m will be liable to tax at 20%. The changes take effect from April 2026. This is half the usual inheritance tax rate, while the assets were previously exempt. Other allowances could mean a married couple could pass on a farm worth as much as £3m.
Farmers worry that government changes to inheritance tax rules will make many businesses unprofitable. Mr. Church said he hoped the government would listen to farmers’ concerns. He wants to find a compromise on its inheritance tax policy. Meanwhile, he told the BBC the changes would harm the family’s ability to run a profitable business.
Inheritance Tax Rules: UK farmers’ protest in 2025
The inheritance tax in Rachel Reeves’ Budget raised the tax on agricultural assets worth more than £1m by 20%. Mr. Bradshaw said: “It’s not money. This is a lifetime of work; it’s their farm’s heritage and custodianship.”
Parked tractors blocked Whitehall before a slow procession took place through Westminster. Save British Farming and Kent Fairness for Farmers organized the action. Organisers Kent Fairness for Farmers and Save British Farming say today’s action is in response to a “toxic” Budget—the Budget that includes changes to inheritance tax for agricultural businesses.
UK farmers’ protest in 2025: Tractors in Westminster
In November, a UK farmers’ protest in 2025 made thousands of British farmers gather in Westminster. They protested the Labour government’s decision to impose an inheritance tax on their assets for the first time in over three decades.
Chancellor of the Exchequer Rachel Reeves’ debut budget cut back an inheritance tax exemption on agricultural land in October. Therefore, farms valued over £1 million would face a 20% tax when handed down from one generation to the next. For couples passing on their estate together, the threshold will increase to £3 million when the policy takes effect in April 2026.
UK farmers’ protest in 2025: Government’s Wrong Estimation
The government stresses that only about 500 farms qualify for the new tax yearly. Therefore, it will not affect the majority of the UK’s farmers. According to the NFU, the policy threatens Britain’s food security while unfairly targeting farming families. The families are already facing high energy bills and a fallout of the post-Brexit trade.
The government has previously said the changes will only impact the wealthiest 500 farms yearly. On the adverse side, farmers’ unions estimate that up to 70,000 farms could be affected overall. Many farmers argue that they are asset-rich regarding their land or livestock. However, they are cash-poor, and the changes would mean they must sell up to pay the tax. As a result, tax changes will leave them facing a £400,000 bill. In addition, they have to sell off so much of the 210-acre farm that it would become unviable as a business.
UK farmers’ protest in 2025: Starmer Makes Excuses
At the G20 summit in Rio de Janeiro, the prime minister insisted that the Budget changes would not affect the “vast majority” of farms. Sir Keir Starmer — who highlighted his childhood growing up in the countryside — said he “gets” farmers’ concerns. He said the government needs the Budget to invest in other areas for rural communities, such as hospitals and schools. The UK farmers’ protest in 2025 is not something to concern Starmer.
He said it is essential to keep arguing that it’s only farms and assets over £3m. This is a typical case of parents wanting to pass on to their children. Therefore, he believed the vast majority of farms would not be affected. He said £5bn had been pledged over two years in farming and food sustainability.
UK farmers’ protest in 2025: Farmers Warn Government
Farmers warn government they ‘won’t back down’ as thousands fill London for Pancake Day rally. It was the fourth time in four months that farmers had flocked to Westminster to protest against the Labour government’s plans to introduce a 20 per cent inheritance tax rate on farms worth more than £1m, bringing to an end the previous 100 per cent tax exemption on all family farms.
Liz Webster, one of the protest organizers, warned the government. She believed the change could lead to a “food crisis” by making it difficult for individuals to invest in agriculture. In an interview with the Independent, she stated, “The government is marching into a food crisis.” Despite the pressure, Labour leaders have not yet retreated, saying that the policy is necessary to fund public services. The rally coincided with a parliamentary debate on an e-petition signed by more than 1,48,000 people demanding tax relief for working farms to remain unchanged.
UK farmers’ protest in 2025: Adverse Effects on Farmers
NFU president Tom Bradshaw is particularly concerned about the impact on the elderly generation of farmers, who have had little time to plan for the changes. “It’s simply wrong,” he said, pointing out that many older farmers rely on drawing value from their farms later in life instead of pension savings. “Farmers reinvest any spare money in the farm to deliver food production. Now that money is going to be spent [not only] on saving for a pension but also life insurance to protect the farm for the future,” he said.
National Farmers’ Union (NFU) president Tom Bradshaw broke down in tears when he suggested that some farmers could contemplate suicide to avoid IHT. He told a committee of MPs that the policy could trigger “the most severe human impact”, and some elderly farmers, or those in ill health, “may well decide that they should not be here” by the time the tax comes into force.
