Inheritance Tax, wheat strikes and public opinion – Making sense of the noise

By Heather Bright, Partner and ARA specialist

Recent weeks have brought a fresh wave of uncertainty for the agricultural sector. Headlines have been dominated by farmers withholding wheat, hot cross bun shortages, and renewed political debate around Inheritance Tax (IHT).

It is an uneasy time for many in the industry.

For farmers and landowners, the implications are far-reaching.

Proposed changes to Agricultural and Business Property Relief could dramatically alter the way farms are passed down through generations, potentially placing huge financial pressure on families whose wealth is tied up in land, not liquidity.

The concern stems from the Government’s plan to introduce a £1 million cap on reliefs from April 2026.

Assets above this threshold could be taxed at 20 per cent.

While this may sound like a moderate change, the reality is different for many farming businesses where land values are high but cashflow remains tight.

The fear of having to sell land simply to cover a tax bill is very real.

Understanding the protest

Protests seen across the UK are a reflection of this anxiety.

For many farmers, the worry comes from the need to remain independent, support a family business, and contribute to food security.

There is a growing sense that policies are being shaped without sufficient understanding of the farming community’s needs and realities.

Public support for farmers has traditionally been strong. Consumers generally want to buy British produce and understand the challenges rural communities face.

However, the potential for disruption, such as food shortages, could test that goodwill if the current protests continue to escalate.

A time to take stock

Against this backdrop, accountancy and financial advisers are encouraging farming clients to take a step back from the headlines and focus on the actions that are within their control.

While political change is inevitable, good planning can reduce its impact.

Here are some steps farming businesses are being advised to take now:

• Start early – For those with estates likely to exceed the £1 million cap, now is the time to assess asset values, understand potential liabilities, and explore planning options ahead of 2026.
• Review succession plans – These changes will have the greatest effect when land is transferred. Open conversations with the next generation, alongside robust legal and tax advice, can prevent problems later.
• Maintain clear records – Demonstrating how land and property are used for business or agricultural purposes will be key to claiming full reliefs under the existing or any revised scheme.
• Avoid hasty decisions – Making changes to ownership structures or selling land in a hurry can backfire. Each action should be carefully considered in light of its long-term tax and business implications.

Farmers are no strangers to uncertainty. From weather patterns to commodity prices, unpredictability is part of the job.

However, it is possible to manage even these latest political developments with confidence.

For expert support with succession planning, tax strategy, and protecting your farm’s financial future, speak to our tax team today.