Farmers across the UK have expressed frustration following the announcement in the 2024 Autumn Budget that inheritance tax (IHT) relief for agricultural properties will be capped at £1 million.
The National Farmers’ Union (NFU) described the budget as a “disaster” for family-run farms, arguing that the new limits on tax relief will force some farmers to sell land to cover inheritance taxes. According to the NFU, this move threatens the continuity of family farms, which are essential to the country’s food supply, and risks “snatching away” opportunities for the next generation of British farmers.
Prominent figures, including broadcasters Jeremy Clarkson and Kirstie Allsopp, also voiced their dismay, suggesting the government is out of touch with rural voters. Many farmers took to social media to echo these concerns, fearing that the cap could drive smaller family farms out of business, leaving larger corporations to buy up agricultural land.
Under the new rules, set to begin in April 2026, farms and other agricultural assets valued over £1 million will only receive 50% relief on the amount above this threshold. Previously, these assets could be passed down with up to 100% tax relief, allowing small farms to remain within families without incurring significant tax burdens.
Those beneficiaries that will be inheriting large farms and pieces of lands will have an enormous tax burden – and be required to pay several hundreds of thousands of pounds in inheritance tax before it can be passed over. For many farmers that run the businesses as lifestyles and do not have disposal savings or cash, this will be an extreme burden and will likely be unfeasible for many, with some relying on estate advances to see them through.
Richard Payne, a farmer from Somerset, shared with the BBC that he has advised his son to pursue a different career, saying their farm may no longer be financially viable due to the tax burden. Payne worries that these changes could lead to an increase in large-scale, factory-style farming, which he believes would undermine the traditional landscape of British farming.
Some, however, see potential opportunities. Holly Purdey, vice-chair of the Nature Friendly Farming Network, pointed out that forced land sales might open doors for new farmers seeking to buy smaller plots. Nonetheless, she warned that generational stewardship—a key motivator for sustainable farming—could be lost if family farms are increasingly sold off.
The government defended the cap, stating that the changes would likely impact only 2,000 estates each year. They also reiterated their commitment to supporting farmers, announcing that the £2.4 billion farming budget for England would be maintained for 2025-26. Food Security Minister Daniel Zeichner reaffirmed that the government values the role farmers play in feeding the nation.
The opposition party criticized the decision, accusing the government of breaking previous promises not to alter agricultural property relief, which they argue destabilizes the future of small farms.
