Dairy Farmer Voices Concerns Over Son’s Future Amidst Inheritance Tax Changes

A dairy farmer has voiced doubts regarding the viability of his son inheriting the family farm, questioning if it will be “worth it” after the reintroduction of inheritance tax. The Labour government announced in The Budget that, from April 2026, inherited agricultural assets valued over £1m, previously exempt, will be subject to inheritance tax at a rate of 20%, which is half the standard rate. Tytherington farmer Richard Cornock stated he wished to avoid his 13-year-old son, Harry, being “saddled with massive debt” after his death. Steve Reed, the Secretary of State for Rural Affairs, indicated that the “vast majority” of farmers would not be affected. Mr. Cornock’s modest farm has been continuously owned by his family for two centuries. He characterized the announcement as “a massive shock to the system for all of the farming community.” “We’ve been used to the fact that you can pass [the business] onto the future generation without any tax liability,” he noted. He further explained, “It’s no exaggeration to say that the majority of farmers don’t make a lot of money; they are asset rich, that’s undeniable, but they don’t generate a large income.” Mr. Cornock asserted that if 20% of his business were lost, it “wouldn’t be viable,” and claimed the prime minister was “breaking the tools we need to produce food.” His son, Harry, has been actively gaining experience on the farm and plans to attend agricultural college in the future. “You’ve seen Harry, you’ve seen how keen he is to be part of the farm, and I wonder whether it’s really worth him doing it now,” Mr. Cornock commented. He added, “Ultimately, when I pass, unless there are ways to get around this or put something in trust, he will be saddled with a massive debt on this place.” The new regulations are not set to be implemented until 2026, and farmers inheriting assets will be granted up to 10 years to pay the tax. Steve Reed, the Secretary of State for the Environment, Food and Rural Affairs, reiterated that the “vast majority” of farmers would not be impacted by these changes. He wrote in the Telegraph that “only the richest estates will be asked to pay.”