Farmers feel trapped by new inheritance tax

LINCOLNSHIRE may be known as the UK's breadbasket, but Nottinghamshire's status as an agricultural powerhouse should not be underestimated. The National Farmers' Union estimates that around 4,000 people work on farms across Nottinghamshire, generating an estimated £228million for the regional economy.

- OLIVER PRIDMORE

Nottinghamshire's farmers collectively manage 138,000 hectares of England's green and pleasant land and alongside this vital stewardship, our county is also a crucial food producer. Nottinghamshire is a world leader in the production of chantenay carrots, for example, producing over 40,000 tonnes every year.

The impact farming has on sectors ranging from vets to food and drink companies is also colossal, yet all of this has now been placed in a perilous position by government tax changes that could leave some having to fork out millions. visited two farms to hear how those running them feel “trapped” and fearful for the future.

THE noise of the tractors careering through Westminster, accompanied by the tones of Clarkson and Farage, may have died down for now but farmers across the country continue to reel from the potential impact of the government’s planned inheritance tax changes.

Farmers do not currently have to pay inheritance tax when their family’s business is handed down to them, but this 100% relief will only apply to the first £1 million worth of assets from April 2026. Above that threshold, farmers will pay a reduced rate of 20% income tax and they can pay this bill interest free over a 10-year-period.

The government says only the 500 wealthiest estates will be affected and that depending on circumstances, two people with farmland could actually pass on up to £3 million without an inheritance tax charge. But many Nottinghamshire farmers describe these figures as “twaddle” and say the government needs to listen.

Arriving at Will Walker's farm is like arriving at any other. You can hear cows and chickens, farm cats meander around the agricultural buildings and the whole site is surrounded by fields.