Farmers unite over 'abysmal' inheritance tax cap

Luke Mason said small family farms were "barely turning a profit" as it was

Farmers across the county have joined a nationwide 'Day of Unity' to protest against proposed inheritance tax reforms.

Protestors gathered on bridges above the M5 as tractor convoys drove slowly along major roads in Gloucestershire in what was described as a stand against the "abysmal" plans.

From April 2026, farms and rural businesses will only get full inheritance tax relief on the first £1m of assets. Anything above that amount faces a 20% tax.

The policy was introduced by the Labour government to raise revenue and "make reliefs fairer" but farmers argue the cap will hit small family farms the hardest.

Farmers stressed this was about more than tax - it was about keeping family farms alive and intact for future generations

Luke Mason, who works on a farm in Northleach, said the policy ignores the reality that many farms are asset-rich but cash-poor.

The land value of even modest farms can easily exceed £1m, thereby creating tax bills of hundreds of thousands of pounds.

"We're not making enough money to pay these bills," he explained.

"Everyone has got it into their heads that we're all rich landowners but realistically we're barely turning a profit.

"Yes the land is worth a lot but if you're not making money you can't afford to pay these sort of taxes. It's pretty abysmal what's going on with farming in this country."

Farmer Brian Brasington said family farms are the crucial "fabric of Britain"

A government spokesperson said the reforms would safeguard public services while keeping inheritance tax fair - with three-quarters of estates paying nothing and the rest paying half the usual rate.

By capping full relief at £1m, the government aims to protect the majority of smaller family farms while stopping wealthy investors from using farmland as a tax loophole.

But Gloucestershire farmer Brian Brasington said the policy had forced generational farmers into a "tight corner with their backs against the wall".

Families fear they may have to sell land, livestock or equipment to afford IHT, breaking up generational farms.

"It's smashing the small family farms - the very fabric of Britain," Mr Brasington said.

"It's not just the farmers that are fed up. I'm afraid the government have got to realise they are hurting everybody."

The chancellor is preparing to give her second budget on Wednesday after weeks of uncertainty about the scale of the tax rises she will need to impose to plug a financial hole of about £20bn.