London As thousands of farmers gathered in the streets surrounding Britain’s Parliament to protest changes to tax laws, the countryside came to the capital.
Many carried banners that read “no farms, no food,” while others brought bales of hay and drove tractors. Everyone was demonstrating against the new Labour government’s proposal to tax agricultural property that was inherited.
Shortly after the protests last week, Tom Bradshaw, the president of the National Farmers Union (NFU), told NBC News that British farmers made less than 1% profit. To pay this planned family farm tax, they lack the funds in their bank account.
Since Prime Minister Keir Starmer’s center-left Labour government assumed office in July, this was London’s first significant protest. In her annual budget this month, his finance minister Rachel Reeves announced the reforms, which would take effect in April 2026.
Inheritance tax in the United Kingdom is levied at 40% on the assets, money, and property of a deceased person over a threshold of 325,000 pounds, or around $410,000, much like estate tax in the United States. Married couples and civil partners can combine their allowances to provide up to $1.2 million to their heirs tax-free thanks to a spousal exemption.
However, under the current regulations, farm buildings, cottages, and homes, as well as land holdings utilized for farming or animal rearing, have been passed down through the generations tax-free. Taken together, these assets may be worth up to $3.77 million in a tax-free legacy.
Farms valued at more above $1.3 million will be subject to a 20% tax, which is half the current rate, starting in April 2026.
“The vast majority of farms would be unaffected by the taxation changes,” Starmers said at the Group of 20 summit in the Brazilian city of Rio de Janeiro last week, defending the changes that supporters claim will recover money from wealthy individuals who have invested in agricultural land and raised the cost of farmland.
Approximately 500 Agricultural and Business Property Relief applications annually will be affected, according to a statement from a spokesman for the UK’s Department for Environment, Food & Rural Affairs (Defra). The statistics were derived from real claims data.
Significantly fewer than 500 estates annually will be impacted by the reforms, according to a different assessment released Monday by the agency for Fiscal Studies, an independent economics research agency.
However, tens of thousands more will be impacted, according to estimates from the NFU and the Country Land and Business Association (CLA), a membership group that represents owners of land, property, and businesses.
Ministers assert that only the wealthy are affected by the inheritance tax cap, but 70,000 farms, both large and small, may be at risk. According to a statement by CLA President Victoria Vyvyan, everyone will be wondering about their future and if they will have one to leave behind.
Noting the disparity between the government s figure and its own, on its website the CLA said it was looking at the impact on farms over a generation, whereas the government s figure is only looking at a single year. We are not saying that 70,000 farms will close or be required to pay the annual fee. A generation, according to the website, is 40 years old.
The NFU pointed NBC News to a Nov. 21 report it produced with economists who formerly worked forBritains Treasuryand Office for Budget Responsibility that says around 75% of commercial family farms would be required to pay the tax.
JCB, a manufacturer of construction machines and a variety of off-arming equipment, supported the demonstration in London. After giving its employees the day off to join the demonstrations, the company said in a statement that it was crucial that food from Britain feeds our nation as not all the food we need can come from abroad.
Despite the gray skies and wet weather, those who did join witnessedscenes similar to those seen in other European cities, where roads have been snarled byfarmers protesting a variety of issuesincluding grain prices and European Union farming policies.
But while some of the protests on the continent turned violent, in London the mood was much more jovial as children on toy tractors pedaled aroundParliament Squareafter a rally addressed by speakers including formerTop GearTV host andcelebrity farmer Jeremy Clarkson.
While some promised to escalate the protests unless the hike is removed,Starmer s government, which won a large majority in July s general election, looks set to stand firm.
Our commitment to our farmers is steadfast we have committed 5 billion to the farming budget over two years, including more money than ever for sustainable food production, the Defra spokesperson said.
Environment Minister Steve Reed also told reporters last week that the government was taking decisions because they re in the interest of every part of the country.
It s hard to be sorry for trying to make this country s economy work and our public services work again, he said.
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