Farmer Concerned Over £500,000 Inheritance Tax on Family Farm

Clare Wise, a farmer, has stated that her children would be required to find £500,000 for inheritance tax if she were to die. Ms. Wise’s family has owned Manor Farm, situated near Darlington, County Durham, since 1875. However, she fears that policy changes introduced in the previous month’s Budget will prevent her from passing the farm to her daughters. “You wouldn’t ask a plumber to sell his tools and keep on working, but that’s what we’re being asked to do,” she commented. A government spokesperson responded by saying that the administration had inherited a “£22bn fiscal hole” and, with “public services crumbling,” a difficult decision was made to ensure that inheritance tax relief was “fiscally sustainable.” Currently, farmland is not subject to inheritance tax. However, from April 2026, any land valued over £1 million will be taxed at a rate of 20% upon the owner’s death, which is half the standard rate of 40%. The government indicates that two individuals who jointly own a farm will be able to transfer land and property worth up to £3 million without incurring tax. This provision, however, will not benefit Ms. Wise, who is the sole owner of her mixed farm located at Little Stainton. She stated that there was “no money for a big inheritance bill” and that “our future is being ripped out from under us.” A government spokesperson explained that with 40% of Agricultural Property Relief benefiting the 7% wealthiest claimants, this approach was “fair and balanced.” They added, “Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3m without paying any inheritance tax.” “The £2.4bn announced for the farming budget next year is the largest ever directed at sustainable food production in our country’s history,” the spokesperson further noted.