Environment Secretary Steve Reed has addressed farmers’ concerns over inheritance tax changes. Many agricultural communities currently inheritance planning in Cheshire, Shropshire and other rural areas are due to be hit when the tax is levied on farms valued at over £1 million.
In a bid to offer some concessions, the Government has agreed to meet the farming lobby on some demands. Speaking at an emotionally charged National Farmers’ Union (NFU) conference, Reed said the Government would be extending the seasonal worker visa programme by five years, to address the issue of labour shortages and ‘tonnes of unpicked food’. It is hoped this will boost profits for farmers.
There will also be a £30 million package to increase payment rates in stewardship schemes, new rules for government catering contracts to support British produce and a multimillion-pound cash injection into technology strengthening controls to combat animal disease. The Government has also committed to protecting farming interests in trade deals.
Reed acknowledged the strength of feeling at the NFU, but equally warned that the Government could not change course by scrapping inheritance tax or in giving farmers all they wanted. The Treasury maintains the policy will significantly curtail large scale tax avoidance at agricultural properties, also facilitating a closer convergence of agricultural and market values of land and promoting more diversity in terms of land ownership.
The new tax rates are scheduled to take effect from April 2026. Previously exempt farmers will be liable for 20% inheritance tax on estates valued at more than £1 million.
