Farming Minister Urges Farmers to “Look Calmly” at Inheritance Tax Proposals

The government’s farming minister has called on farmers to “look calmly” at proposed inheritance tax changes, asserting that “the vast majority will be fine.” Daniel Zeichner, the Member of Parliament for Cambridge, made these remarks as hundreds of agricultural workers were getting ready to journey to London this week to demonstrate against the policy unveiled in the previous month’s Budget. Speaking on the Politics East programme, he stated that the requirement for farmers’ heirs to pay inheritance tax on land valued over £1m was essential, dismissing assertions that thousands of families would be impacted as “extraordinary.” The National Farmers Union (NFU), which anticipates that most farmers will be impacted, has characterized the announcement as a “miscalculation… which demonstrates a fundamental lack of understanding of how farming is shaped and managed.” Previously, agricultural land was exempt from inheritance tax, but the chancellor intends to alter this. Commencing April 2026, land exceeding £1m in value will incur a 20% tax upon the owner’s death, which is half the standard 40% rate. This development has generated concern among farmers, though the farming minister maintains that their apprehension is unwarranted. “I urge people to look calmly at the detail and I think they will find that the vast majority will be fine,” he said. He added, “The figures from the Treasury are very clear: under 500 farms a year are likely to be affected and I would say to people take advice because every person’s situation is different and there will be many, many people who will find they are not actually going to be caught by this.” The minister indicated that couples and agricultural properties might qualify for additional reductions on their tax liability, and no payment would be due if land is transferred over seven years prior to an individual’s death. “People should look at the actual facts rather than the slightly extraordinary projections which are being made,” he commented, referencing assertions by the NFU and Country Land and Business Association that 70,000 individuals would be impacted. Simon Dann operates a farm spanning 680 acres close to Dereham in Norfolk. His 400-cow herd is milked thrice daily for a significant milk supplier, and his 18,000 hens produce eggs for a prominent supermarket. Additionally, he manages a thriving ice cream enterprise that provides products to hotels and restaurants throughout the county. “Farming is getting harder,” he states, attributing this to the volatile milk price, the repercussions of Brexit, and challenges in recruiting skilled personnel. He added, “I would dearly love to bring the chancellor out to my farm and get her to work with me for a day. I’d love her to go home and think ‘gosh there are some people working really hard out there to put food on our plates, we ought to take more notice of them’.” He describes the new inheritance proposals, which could result in his children facing a tax liability exceeding £1m, as “a kick in the teeth.” He further commented, “Because we’re in a minority, they (the government) think they can get away with it.” He concluded, “But this…has created a potentially large tax burden which the average farm may not be able to come up with.” Zeichner affirmed that there were no intentions to revoke the tax. He attributed the policy change to the previous government’s economic management but noted that the Budget included an increase in the farming and food production allocation, which he considered a favorable signal for the industry. The minister, who served on Labour’s Environment, Food and Rural Affairs team during his time in opposition, informed Politics East that he was “a champion of farmers.” He stated, “We absolutely get it and I am absolutely prepared to look them (farmers) in the eye and say ‘we are with you, we will support you through what I understand is a difficult transitional period’.”