The National Farmers Union (NFU) is Locked in a Dispute With the Treasury Over Inheritance Tax Claims
The National Farmers Union (NFU) is locked in a dispute with the Treasury over inheritance tax claims. At the heart of the issue is the Treasury’s assertion that 72% of farms won’t be affected by the new inheritance tax rules, which require farms worth over £1 million to pay 20% tax.
The NFU vehemently disagrees, arguing that this change would devastate family farms, forcing some to break up their farms to foot the bill. NFU President Tom Bradshaw has been vocal about the potential consequences, highlighting the stress and anxiety these planned changes are causing for farmers.
Key Concerns:
- Impact on Family Farms: Farm break-ups could affect food production and farm viability.
- Food Security: The changes could compromise domestic food security.
- Environmental Delivery: The farming industry’s environmental efforts might also be hindered.
The NFU has met with Defra and Treasury officials to discuss the issue and stress the significant impact on British food and farming [3]. The UK farming industry has come together to warn the Chancellor about the crippling effects of these changes.
According to the government’s summary of reforms to agricultural property relief and business property relief, the majority of claims for these reliefs will be unaffected, with almost three-quarters of estates claiming agricultural property relief and the majority of estates claiming business property relief in 2026 to 2027 expected to be unaffected ¹. However, the NFU remains concerned about the potential impact on family farms and the broader agricultural industry.