Peterborough farm 'totally let down' by inheritance tax plan

A farmer near Peterborough is calling on the Government to make a U-turn on inheritance tax, which could see the end of her family business.

Farmers from across the UK are today gathering in Westminster to protest changes to inheritance tax introduced in the recent budget.

The new rules, which impose taxes on agricultural assets exceeding £1 million, have drawn criticism for threatening the viability of family farms and risking long-term food security.

"Very long hours for very little thanks"

Judith Jacobs runs Moor Farm and believes the plans are unfair.

"We work very hard and support lots of people and our tax goes to support lots of people who don't work; would it be easy for us to give up and not work?" she said.

"It makes us think like that because we work very long hours for very little thanks.

"We're feeling quite let down at the moment."

Under the previous system, assets used for agricultural production were exempt from inheritance tax.

Farmers argue the changes will force families to sell portions of their land to pay the tax, undermining both efficiency and sustainability.

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.

Inheritance tax plans "a difficult decision"

A Government spokesperson said it's needed to act to fill a "£22bn fiscal hole inherited from the previous Government.

"And with 40% of Agricultural Property Relief going to the 7% wealthiest claimants, we made a difficult decision to ensure the relief is fiscally sustainable."

Up to £3 million can be passed on by two people free of inheritance tax, depending on a person's circumstances, according to Labour.

The Government say anything beyond that will be taxed at 20% rather than the usual 40% normal rate of inheritance tax, paid in instalments over 10 years.

Farmers attending the rally hope to urge the government to reconsider the new tax rules, which they argue do not account for the unique financial structure of farming businesses.

Farmers also argue the reforms could harm Britain’s food security at a time of growing uncertainty around global supply chains.

"We feel totally let down"

"Sir Keir Starmer convinced us he would be backing British farming and the country couldn't survive without us farmers; now he's done a U-turn and we feel totally let down in more ways than just the tax," Ms Jacobs added.

"The £1m limit set is not much more than a house and a few acres, which would render us a smallholding and you can't make a living from a smallholding.

"If he wants us all to be smallholders, we'd have to have a small job alongside our small farm because it won't work."

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