Commoners’ Defence Association chair Andrew Parry-Norton blasts inheritance tax changes as thousands gather to protest

NEW Forest farmers and New Forest West MP Desmond Swayne were among thousands who gathered in London this week to protest over changes to inheritance tax in the budget.

As reported in the A&T, last month’s budget included reforms to agricultural property relief (APR) inheritance tax, which applies when farmers and landowners pass farmland to the next generation, and business property relief (BPR), relating to business assets that are part of the estate.

Some farmers have expressed concerns that younger generations may need to sell land or buildings to pay tax bills, leading to farms that have been owned by the same family over many years being broken up.

Among those marching against the changes in Westminster on Tuesday was chairman of the Commoners’ Defence Association, Andrew Parry-Norton, who said the reforms were “huge”.

“It really will have an impact on commoning,” he told the A&T, explaining: “It is just another nail in the coffin; we are already struggling to make money, with subsidies being cut, and we don’t have another scheme to go into [following the phasing out of the Basic Payment Scheme], so suddenly, incomes are going.

“At the moment commoning and farming is taking bash after bash. I attended the protest and I saw grown, old farmers crying openly [about it].”

He said commoners who are tenant farmers would also be impacted as their farms may need to be sold when the landowner dies. The changes could also prevent farmers who own their land from investing in their sites, as the tax is higher the more it is worth.

“I have spent the last four to five years investing in my farm to improve it, but all I have done is succeed in increasing the inheritance tax bill,” he said, adding: “We need the government to admit they made a mistake and revise this – for something of this magnitude to be agreed without consultation or thought is unbelievable.”

Under the changes, the full 100% relief from inheritance tax will be restricted to the first £1m of combined agricultural and business property relief, above which landowners will pay inheritance tax at 20%, compared with 40% on other estates.

The new tax, which will come in from April 2026, can be paid in instalments over 10 years interest free, rather than immediately, the government said.

New Forest West MP, Sir Desmond Swayne, met with six local farmers to support their plight. He told the A&T: “Farming is asset rich and cash poor. It is capital intensive in terms of land values and modern machinery, but the return on that capital is lower than in almost any other endeavour.

“Income from a farm meeting the inheritance tax threshold can be as modest as £40,000-£60,000, so the cash generated to pay the tax – even over the extended time – will not be sufficient. The only way it can be paid is by selling land, risking the economic viability of the farm.”

It is believed that 70,000 farms across the UK will be impacted, leading to fears across the industry that family farms will have to sell land to pay tax bills, hitting food security and environmental projects.

The Country Land and Business Association (CLA), which represents farmers, landowners and rural businesses, is campaigning for the government to maintain APR and BPR.

Tim Bamford, regional director of the CLA in the south east, said: “The Chancellor’s announcement will have massive consequences for hard-pressed farmers, consumers and the environment.

“The government appears to think inheritance tax reliefs for farmers are loopholes. In reality, they are targeted reliefs designed to protect Britain’s rural economy, jobs and food security.

“This isn’t the only challenge that the farming community is facing. The real-term cut to the agriculture budget in England will mean that the government's own ambitions and targets for nature will be impossible to deliver.”

He added: “The fear and anger felt by farmers and rural businesses cannot be overstated. There is enormous growth potential in the countryside, but we need the government to be working with us, not against us.”