Family farms face urgent succession decisions as tax campaign enters new phase
Chancellor Rachel Reeves sparked rural fury in October when she announced that agricultural and business property relief (APR and BPR) would be cut for assets worth over £1m, leaving many family farms facing a crippling 20pc tax when handing land down to future generations.
It was a hammer blow to an industry already suffering from rampant cost inflation, the withdrawal of EU-era subsidies, volatile commodity prices and extreme weather.
Thousands attended impassioned protests in Westminster and across the country, while the issue also prompted the launch of the EDP's Fair Deal for Farmers campaign, calling for a reversal of the policy.
But with ministers digging in their heels, the campaign has now entered a new phase.
Norfolk farmers joined thousands from across the country in Westminster to protest against government cuts to inheritance tax relief (Image: Newsquest) Farming leaders have shifted their focus from mass public demonstrations to targeted meetings with rural Labour MPs, aiming to prove the devastating financial impact on "asset-rich, cash-poor" families - many of which may need to sell land to pay death tax bills which their businesses do not make enough profit to cover.
Meanwhile, with no hint of a government climbdown or compromise so far, family farms are holding increasingly urgent talks with their accountants, consultants and solicitors to find solutions ahead of the implementation of the new tax regime in April 2026.
Chris Solt, agricultural partner at Norfolk-based accountancy firm Lovewell Blake, said: "It crops up in every single meeting.
"In the first two or three months, this subject came up in every conversation and it was very emotional, very passionate - but it was a background conversation.
"We didn’t know what the final legislation was going to say, so we were saying: 'Wait and see what happens, don’t rush into anything that you might regret or cannot reverse'.
"Now it is coming to the fore because we are running out of time. You’ve only got until next April to get your ducks in a row, but if you need property moving and wills changing, solicitors are required and they're going to be quite busy."
Mr Solt said one "simple win" could be to transfer ownership of assets between spouses........
© Eastern Daily Press
