Farmers say inheritance tax is last straw for many

Farmers have described changes to inheritance tax as a "last straw" for many.

At a public event in Bridport, Dorset, a panel of agricultural experts discussed the pressures impacting their industry.

Tim Gelfs, chair of Dorset NFU, said he had "never found out why food production has never had support from government", a government spokesperson said it "will invest £5bn into farming over the next two years".

Changes to inheritance tax include applying the tax to inherited agricultural assets worth more than £1m for the first time.

One of the panellists, Trevor Cligg, owns Pipplepen Farm in South Perrott.

He moved out of dairy farming and only raises beef cattle, sheep and has 60 acres of arable land.

He said: "For a long time, farmers do not feel valued by the government.

"Things have been getting more and more regulated."

Mr Cligg said that for every £1 of subsidy, farmers spent £7 back into the economy on upgrading equipment and investing in units.

But he said farmers now questioned whether they should do that because "then somebody in the family drops dead, and we've got to pay £1m in tax - we can't afford it".

"So that's really going to hamper investment which will reduce productivity and efficiency," he added.

The changes to inheritance tax were announced by Chancellor Rachel Reeves as part of the budget in the autumn.

The move prompted anger among farmers and led to national protests.

From April 2026, agricultural assets worth more than £1m will be subject to a 20% inheritance tax - half the usual rate.

The government says no tax would be payable on the first £325,000 above the limit, bringing the untaxed total to £1.325m.

But Rebecca Hill, who runs the North West Farm in Winterborne Kingston, said "the current regime" was "discriminatory" against those who were divorced, single or had lost their partners.

"An exact same business with two partners will pay £300,000 less than my business," she said.

Tim Gelfs, a first-generation chicken farmer at Westleaze near Beaminster and county chair of Dorset NFU, said: "We've got a very unfair system and all we really want to do is progress.

"If we make money, we will reinvest in our business, the rural economy will grow and everyone will be better off, with a thriving rural economy, particularly where we live in West Dorset."

Event chair Paul Lashmar said: "Farmers have been hit by over a decade of government complacency, over regulation and lack of financial incentives.

"The inheritance tax hike is a last straw for many."

A government spokesperson said the next two years will see "the largest budget for sustainable food production in our country's history".

They added: "Our reform to Agricultural and Business Property Relief will mean estates will pay a reduced effective inheritance tax rate of 20%, rather than standard 40%, and payments can be spread over 10 years, interest-free.

"This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year."

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