Fears family farms will break up over tax change

Ben Chilman said he worried the changes could be damaging to family farms like his

A farmer said he fears changes to inheritance tax rules could lead to the break up of family farms like his.

In her Autumn Budget, Chancellor Rachel Reeves said inheritance tax relief for farms would be limited to £1m, meaning all assets above that threshold passed down to the next generation would be taxed.

In Kinsham, Herefordshire, near the border with Wales, Ben Chilman works on his farm alongside his dad and said the changes would be a blow to families like his in farming.

"This could see the break up of family farms in Britain and that's the worrying thing for us and so many," he said.

"If you take the farm that has been in the family for generations and turns over just enough to create a modest living, if something unexpected happens but their inheritance tax will be due [how will they pay?].

"I no doubt there will be many family farms sat around their kitchen table wondering what they've worked tirelessly for is not viable for the next generation."

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

Reeves said the government was having to make very difficult choices to "fix Britain’s foundations" but insisted the changes would affect only the wealthiest farmers.

Mr Chilman questioned how the tax would work as "when farms aren't making money what will pay the tax".

"An unhelpful common misconception exists that farming appears profitable when looking at large machinery and land value but in reality for so many family farms, it is far from this," he added.

Potato farmer Alastair Heath said there "might be no farming in a generation"

Alastair Heath, a potato farmer in Great Bolas, Shropshire said a late spring and a wet September was already putting strain on his business.

The addition of the Budget changes left him questioning the future of farming in the country.

"It's like kicking us when we're down really," he said,

"We're on the back of a pretty rough five years - it just means costs and uncertainty going forward.

"It just makes me very despondent about the whole industry and where our future is - there might be no farming in a generation."