Farmers face unfair inheritance tax burden under new government rules
- The Institute for Fiscal Studies highlighted concerns over inheritance tax changes affecting farmers in the UK.
- Protests erupted against the announcement of a 20% inheritance tax on farms valued over £1 million.
- The IFS suggested allowing lifetime gifts of agricultural property to be tax-free to help farmers avoid financial burdens.
In November 2024, the Institute for Fiscal Studies (IFS) released a report highlighting potential unfairness in the government's inheritance tax policy affecting farmers in the UK. The changes, announced in the previous budget, put farmers with businesses worth over £1 million at risk of facing a 20% inheritance tax. This decision sparked significant backlash, including protests from the agricultural community. The IFS noted that current farm owners who pass away within seven years of implementing the new law would lack the opportunity to gift their land tax-free, creating financial burdens for those trying to preserve family farms. Suggested mitigations include allowing tax-free lifetime gifts before a specific date, but there has been resistance from government officials. Concerns also arose regarding the impact on food security and the financial challenges faced by farmers who may be asset-rich yet cash-poor.