Cornwall Council Calls for Reversal of Farm Inheritance Tax Changes

Representatives of Cornwall Council have urged the government to re-evaluate proposed modifications to inheritance tax regulations for agricultural landowners. Effective April 2026, farmers will face a 20% tax on the value of their land and assets exceeding £1 million. Council members endorsed a resolution during a meeting, demanding the abandonment of these proposals due to concerns they could force some local family farms out of operation. The government dismissed these concerns, asserting that approximately three-quarters of farms would remain unaffected by the changes, and the revenue generated would contribute to funding public services. Alan Jewell, a Conservative councillor and a fourth-generation farmer from Falmouth, criticized the government, stating they were unaware of the implications of their actions. He remarked: “A lot of these farms are going to be caught by this tax and won’t be able to afford to pay it. “They should have gone for the big land investors not the genuine family farms. “They need to up the threshold to around £6m, as that will give the family farms of Cornwall some way out.” Conservative members of the authority staged a demonstration, wearing wellington boots, prior to a meeting on Tuesday to discuss the motion introduced by councillor Nick Craker. He articulated: “We want the government to listen to our farmers. “We haven’t got a lot of tools in our toolbox, but what we can do is amplify their voice and tell them we’re on your side.” Councillors from various political affiliations expressed their solidarity with local farmers. Mebyon Kernow member Michael Bunney stated the government had “got it wrong” and expressed hope the policy would be “re-jigged”. Non-aligned Councillor John Conway characterized the tax as an “attack on Cornwall and on the Cornish way of life”. Councillor Colin Martin, representing the Liberal Democrats, called on the government to explore alternative revenue generation methods that would not adversely affect farmers. Conversely, Labour councillor Laurie Magowan advocated for the alteration, citing its potential to enhance fairness within the inheritance tax system. Magowan encouraged the council to prioritize understanding the extent of the impact on Cornish farmers in order to direct assistance to those affected. Both HM Treasury and the Department for Food, Environment, and Rural Affairs were contacted for additional statements. A government spokesperson affirmed that its commitment to farmers “remains steadfast”. They noted that £5 billion had been allocated to the farming budget over a two-year period. The spokesperson added: “Our reform to agricultural and business property relief will impact around 500 estates a year. “For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest-free. “This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on.” The original article concluded with information on how to follow BBC Cornwall on X (formerly Twitter), Facebook, and Instagram, and an email address (spotlight@bbc.co.uk) for submitting story ideas. It also contained a copyright notice for 2024 BBC, a statement that the BBC is not responsible for the content of external sites, and a reference to its approach to external linking.