Farmers already handing over part of business amid concern about tax

£3M ALLOWANCE 'AMOUNTS TO NOT A LOT'

- By OLIVER PRIDMORE

A NOTTINGHAMSHIRE farmer says his parents are already handing over part of the business as the government presses ahead with tax changes that could make some farms “unviable”.

The Chancellor, Rachel Reeves, has told the Post that she still believes the plans are “fair”, but farmers believe recent changes to the scheme in her budget “amount to nothing.”

The Post reported earlier this year that many farmers in the county feel “trapped” and “thrown to the wolves” by the changes, which have prompted several protests involving tractors descending on Westminster.

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 of assets from April 2026.

Above that threshold, farmers will pay a reduced rate of 20% income tax and can pay this bill interest-free over 10 years.