Concerns Emerge Over Inheritance Tax Changes Potentially Fragmenting Family Farms

A farmer has expressed concerns that modifications to inheritance tax regulations might result in the fragmentation of multi-generational agricultural businesses, including his own. During her Autumn Budget announcement, Chancellor Rachel Reeves stated that inheritance tax relief for agricultural properties would be capped at £1 million. Consequently, any assets exceeding this limit, when transferred to subsequent generations, would become subject to taxation. Ben Chilman, who operates his farm in Kinsham, Herefordshire, close to the Welsh border, alongside his father, commented that these alterations would significantly impact farming families such as his own. “This could see the break up of family farms in Britain and that’s the worrying thing for us and so many,” he said. “If you take the farm that has been in the family for generations and turns over just enough to create a modest living, if something unexpected happens but their inheritance tax will be due [how will they pay?].” “I no doubt there will be many family farms sat around their kitchen table wondering what they’ve worked tirelessly for is not viable for the next generation.” Historically, the Agricultural Property Relief provision allowed for the transfer of agricultural land and its related structures to succeeding generations without incurring charges. Ms. Reeves indicated that the government was compelled to undertake challenging decisions to “fix Britain’s foundations,” yet she maintained that these adjustments would exclusively impact the most affluent farmers. Mr. Chilman raised concerns regarding the practical application of the tax, stating, “when farms aren’t making money what will pay the tax”. “An unhelpful common misconception exists that farming appears profitable when looking at large machinery and land value but in reality for so many family farms, it is far from this,” he added. Alastair Heath, a potato farmer based in Great Bolas, Shropshire, noted that his business was already under pressure due to a late spring and a wet September. He added that the introduction of the Budget modifications caused him to doubt the long-term viability of agriculture in the nation. “It’s like kicking us when we’re down really,” he said, “We’re on the back of a pretty rough five years – it just means costs and uncertainty going forward. “It just makes me very despondent about the whole industry and where our future is – there might be no farming in a generation.” For further updates, BBC Hereford & Worcester can be followed on BBC Sounds, Facebook, X, and Instagram. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content found on external websites. Information regarding our policy on external linking is available.