NFU campaign sees over 12,000 letters sent to MPs about Inheritance Tax realities
By Heather Bright, Partner and ARA specialist
Inheritance Tax remains an ongoing concern for farmers across the UK, especially with the reform to the Agricultural Property Relief (APR) and Business Property Relief (BPR) taking effect in April.
The growing concerns have been taken on board by the National Farming Union (NFU) for England and Wales, which has initiated a campaign that saw over 12,000 letters sent to over 550 MPs in just 12 days, encouraging them to speak up for farming.
The letters also highlighted the detrimental impact the IHT reforms are having on farmers who are having to mitigate their potential IHT liabilities while reconsidering their own succession plans.
How did the campaign start?
The latest NFU campaign follows an emotional interview with two farmers from Wales. Shown on the BBC’s Countryfile, the farmers spoke openly and honestly about their current challenges and the impact IHT is having on their family farm.
Speaking about the campaign, NFU President, Tom Bradshaw said, “It is remarkable that in the space of less than two weeks, more than 12,000 letters have been emailed to politicians of all parties. Many MPs have been contacted by more than 50 constituents, which really helps the message cut through.
“This awful and unfair tax is going to have so many unintended consequences and the human impact is not being considered by the government.
“You only have to watch the powerful interview with the Rees family on BBC Countryfile to understand how many farming families will be left in the lurch, unable to afford horrendous future tax bills.”
The reality is these farmers aren’t alone, as many begin to assess their own plans and try to reduce their liabilities. This includes exploring the sales of land, equipment and livestock to reduce the overall value of their farm.
The NFU is making a concerted push to encourage a change in the IHT laws taking effect, which has included writing to the Chancellor Rachel Reeves, offering alternative proposals to the changes she announced in the 2024 Autumn Budget.
The Centre for the Analysis of Taxation (CenTax) have also looked into the impact of these changes and offered recommendations.
In their policy report, The Impact of Changes to Inheritance Tax on Farm Estates, they discuss in detail who is likely to be effected and offer their recommendations.
What changes will take effect in April?
From April 2026, the reform to the APR an BPR will take effect where only the first £1 million of a qualifying property or farm will benefit from the reliefs in place.
If the value of your farm exceeds £1 million, you will also receive a 50 per cent relief. This, tied in with the frozen IHT nil-rate band of £325,000 is intensifying the pressure on farmers who are fearing the worst and staring at the prospect of an IHT bill.
Any farm values above that will only receive 50 per cent relief. In addition to this, the IHT nil-rate band will remain frozen at £325,000 until at least 2030, increasing the likelihood of more farmers becoming liable for IHT.
Unsurprisingly, this is making farmers reconsider their plans and look at ways to reduce their liability to protect their family and their farm.
It’s a really tough period for farmers with plenty of decisions to be made, but we are here to support you if you need help managing IHT and reorganising your succession plans.
We can help you analyse your plans, give you valuable advice and the tools to make the best decisions.
For support with any IHT concerns, speak with our friendly team.