Farmers Protest Inheritance Tax Changes as Government Defends Policy

Welsh farmer Jacob Anthony, 31, has reported experiencing sleepless nights and feeling “angry and scared” following the announcement of revisions to inheritance tax regulations. Mr. Anthony is among hundreds of farmers from Wales who have traveled to Westminster to join a UK-wide demonstration against these proposals. He voiced concerns about potentially having to sell portions of his family’s 700-acre hill farm near Bridgend to cover a future tax liability, asserting that his ancestors would be “turning in their graves.” Prime Minister Sir Keir Starmer affirmed that the government would not alter the new inheritance tax policy affecting farmers. Speaking to the BBC at the G20 summit, he acknowledged the concerns but expressed confidence that “the vast majority of farmers will be totally unaffected.” When questioned about a potential policy change, he responded: “No. Once people appreciate that in a typical case it’s a £3m threshold before Inheritance Tax is paid then I think people will see the vast majority of farms are except, and even those over the threshold are only subject to a 20% tax that can be paid over 10 years.” He further noted that in rural communities, “we need really good schools and hospitals and houses people can afford to live in and they were the measures we invested in heavily in the budget.” The UK Treasury has indicated its intention to adopt “a fair and balanced approach” to inheritance tax relief, aimed at contributing to the funding of public services. Last month, Chancellor Rachel Reeves announced in her budget that farms valued at over a million pounds would be subject to a 20% inheritance tax, payable in installments over 10 years, commencing April 2026. Jacob Anthony, a fifth-generation farmer at Cwm Risca in Tondu, manages a farm with 1,000 breeding ewes and 300 cattle. He stated, “I want that opportunity to be able to pass it on to my children in the future and I feel like this government is taking that away from us,” apologizing for becoming “emotional.” He added, “But I’m so, so angry with them.” Jacob’s father, Peter, mentioned that the family gained greater insight into potential future challenges after Jacob’s grandfather passed away in 2022. Peter explained, “It’s all quite raw with us in the fact that we’ve gone through and sorted a lot of affairs after my father.” Both he and Jacob believe that if inheritance tax had been applicable at that time, “it would have finished the farm as it is.” Anwen Hughes, a farmer operating near Llanarth in Ceredigion, criticized the UK government’s handling of the announcement, describing it as “a complete mess.” She operates two farms: one with her husband and four children, and another with her mother. She raised questions about the future impact, asking: “We don’t know whether our land prices will fall, what impact that will have on mortgages and loans and where do we stand in the future if we need to expand?” Farmers are traveling to the London protest in large numbers, with coaches arranged by both farming unions and local communities. An official “mass-lobby” event organized by the NFU at a Westminster conference center was significantly oversubscribed, necessitating its division into multiple sessions, each accommodating 600 farmers. One of these sessions is specifically for Welsh farmers, who are scheduled to meet with local MPs afterward. A separate rally, largely organized online, is anticipated to take place outside. Ioan Humphreys, a fifth-generation sheep, beef, and poultry farmer from Newtown, Powys, who has a substantial social media following, is among the speakers slated to address the crowd. He also played a role in organizing the largest protest ever witnessed outside the Senedd in February, which involved farmers expressing concerns over various issues, including changes to their subsidies. He commented, “You would have thought the UK government would have looked at that and thought ‘hang on a minute’… rather than piling more pressure (on the industry).” Mr. Humphreys further expressed his concern: “My concern is it’s not just affecting farmers – it’s all the local businesses – the mechanics, the feed merchants the tractor salesmen.” He added, “If farmers have to sell up then it will hurt the entire rural community.” Chancellor Rachel Reeves initially announced that farms valued over £1 million would be subject to inheritance tax. Since then, the government has repeatedly clarified that, due to other allowances, the effective threshold for many will be closer to £3 million, implying the change would primarily target the wealthiest landowners while safeguarding smaller farms. However, this clarification has done little to alleviate fears within the farming community, and confusion persists regarding the exact number of farms that might be affected. The Treasury’s figures estimate an impact on approximately 500 estates annually, although farming unions cite data from the Department of Environment, Food and Rural Affairs (DEFRA) suggesting that closer to two-thirds of farms could be liable. Sion Roberts, a chartered tax adviser based in north-west Wales, estimated that between 50 and 100 farmers on his firm’s client list would be impacted. He noted a “huge lack of understanding and sympathy” regarding the complexity of the announced policy. While defending the plans, Huw Irranca-Davies, Wales’ rural affairs secretary and deputy first minister, stated at an NFU Cymru conference that “more work” was needed to fully comprehend the likely impact. First Minister Eluned Morgan, during a radio phone-in, advised everyone to “calm down until we are clear about how many farms are affected.” This controversy emerges at a challenging time for the Labour-run Welsh government, which has been endeavoring to mend its relationship with the agricultural industry following the February protests. The government is expected to unveil a revised version of its new farm subsidy scheme next week. The UK government issued a statement: “With public services crumbling, a £22bn fiscal hole inherited from the previous government and 40% of Agricultural Property Relief going to the 7% of wealthiest claimants, we made a difficult decision to ensure the relief is fiscally sustainable.” It added, “Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3m without paying any inheritance tax – this is a fair and balanced approach.”