Cambridge MP reassures farmers after tax plan protest
Thousands of farmers took to London to protest over the proposed move
Cambridge MP Daniel Zeichner believes most farmers shouldn't be worried about changes to inheritance tax (IHT).
Thousands of farmers from across the country travelled to London yesterday in protest over the Government's plans to introduce a 20% levy on estates worth more than £1 million from April 2026.
The National Farmers’ Union (NFU), which organised the rally, has warned the policy could disproportionately harm farmers, who hold valuable assets like land and equipment but often lack liquid capital.
Mr Zeichner - who's also a farming minister - backs the move.
"We think it's only fair"
"You can't extrapolate from the asset values of farms, you have to look at the actual figures and claims from the Treasury; that's the reality and the numbers are absolutely clear," he said.
"They are (people who'd be taxed), in many cases, sadly people who've bought land to avoid IHT and some wealthy farms.
"We think it's only fair, not least because those who pay IHT face many of the same challenges."
Farmers have been exempt from IHT due to tax reliefs, including agricultural property relief - which applies to land and farm buildings - and business property relief for the likes of tractors, machinery and other assets like farm shops.
It's argued by farmers that the changes will force families to sell portions of their land to pay the tax, undermining both efficiency and sustainability.
Opposition leader lays down plans to reverse tax
Speaking to an Environment, Food and Rural Affairs committee on Tuesday (November 18), environment secretary Steve Reed MP said many farmers protesting over the IHT changes are "wrong" about the policy.
He said "assuming these projections from HMRC, validated by the OBR and IFS, are correct then many of them, probably happily, are wrong because there are things that they can do to plan their tax affairs as most businesses or asset owners would do to limit their liability.
"The numbers I've heard bandied around are enormous and very, very frightening if people were to believe them."
Conservative leader Kemi Badenoch MP has told farmers that she'd plan to reverse the tax plans if her party was to regain power.
Mr Zeichner said the move will affect "only 500 estates" and has this advice for farmers who are concerned.
"Every situation is different and what I'd advise people is talk to the tax experts because in many cases, providing people pass their farm on and live a further seven years, there wouldn't be a single penny of IHT paid anyway," he added.
"The future of farming is going to change in this country; I want to work with farmers to make sure they can go on, doing the vital work they do to produce the food we all need."