Farmers 'bewildered and frightened' over inheritance tax, report finds

"Farmers are "bewildered and frightened" with many questioning the future of their businesses because of the government's proposed changes to inheritance tax, an independent review of farm profitability has found."

"Environment secretary Emma Reynolds said the government and the farming and food industries would work much more closely together in the future. Getty Images That would be done through a newly created farming and food partnership board made up of senior industry and government leaders that would "drive growth, productivity and long-term profitability across the sector", she explained. "When farming thrives, the whole country benefits. British farmers are central to our food security, our rural economy and the stewardship of our countryside," the secretary of state added. "This is about serious action to remove barriers, unlock investment and make the food system work better, so farm businesses can grow, invest and plan for the future with confidence.""

"The report did not look in detail at the government's proposed changes to inheritance tax, which are set to apply to farm businesses worth more than 1 million at a rate of 20% from April 2026. But Baroness Batters said it was raised as the single biggest concern by almost everyone in the farming sector she talked to as part of the review. She said the sector had faced a sharp rise in costs and increasingly extr"

Farmers are bewildered and frightened, and many question the future of their businesses because of proposed inheritance tax changes. Fifty-seven recommendations aim to improve productivity, investment and resilience in agriculture. There is no silver bullet to making farms in England profitable. A farming and food partnership board of senior industry and government leaders will drive growth, productivity and long-term profitability across the sector. The government plans to remove barriers, unlock investment and make the food system work better so farm businesses can grow, invest and plan for the future with confidence. Proposed inheritance tax changes would apply to farm businesses worth more than 1 million at a 20% rate from April 2026.

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