Farmer laments 'hammer blow' tax change

Richard Baugh has been working in the farming industry for all life

A third-generation farmer said he has considered giving up farming amid the government's “hammer blow” plans to change inheritance tax.

Chancellor Rachel Reeves announced last week that combined business and agricultural assets worth more than £1m would be taxed at 20% from 2026.

Richard Baugh’s Woodside Farm in Wellow, Nottinghamshire, has been in the family since the 1950s, but he said moving abroad was now a “serious consideration”.

The Department for Environment, Food and Rural Affairs said its commitment to the nation’s farmers “remains steadfast”.

The 38-year-old said he predicts the 300-acre farm could generate a tax bill up to £400,000 under the rules announced on Wednesday.

Richard Baugh said he owns about 140 of the 300 acres of land he farms

Mr Baugh said: “[The budget] was sad. It was another hammer blow to an industry that’s already been on its knees for so long.

“Every time you think you’re getting out of this, the government, supermarkets or the weather always comes and hits you again. It feels like you’re being kicked from all angles.

“We would have to sell a third of the farm off to pay for the inheritance tax – that would equate to us needing 50% more profit from that land so food prices would have to go up 50% more to cover what we’re making.

“I don’t want to leave as I like the UK but it’s something we are now discussing.”

Agricultural Property Relief previously meant farmland and associated buildings could be passed to future generations free of charge.

The government said the change was only expected to affect about 2,000 estates each year – a figure disputed in the industry.

Rachel Reeves unveiled £40bn in tax rises in her first Budget

"[The future] doesn’t look great,” Mr Baugh added. “I’m lucky enough to inherit this farm but you’re just a custodian until the next generation."

Following the Budget announcement, a government spokesperson said it would be maintaining the £2.4bn level of farm payments for England in 2025/26.

A statement said: “Ministers made clear that the vast majority of those claiming relief will not be affected by these changes.

“They will be able to pass the family farm down to their children just as previous generations have always done.

“This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on.”