Farmer worried for son's future after tax return

Richard Cornock is one of many farmers to have spoken out against the reintroduction of inheritance tax

A dairy farmer says he doubts that his son inheriting the family farm is "worth it" after the reintroduction of inheritance tax.

From April 2026, inherited agricultural assets worth more than £1m, which were previously exempt, will be liable to inheritance tax at 20%, half the usual rate, the Labour government announced in The Budget.

Tytherington farmer Richard Cornock said he did not want his son Harry, 13, to be "saddled with massive debt" in his absence.

Steve Reed, the Secretary of State for Rural Affairs said the "vast majority" of farmers would be unaffected.

'Massive shock'

Mr Cornock's small farm has been in his family for 200 years.

He said the announcement was "a massive shock to the system for all of the farming community".

"We've been used to the fact that you can pass [the business] onto the future generation without any tax liability," he said.

"It's no exaggeration to say that the majority of farmers don't make a lot of money; they are asset rich, that's undeniable, but they don't generate a large income."

Before The Budget was announced by Rachel Reeves last month, farmers had been exempt from paying inheritance tax since 1984

Mr Cornock said, if 20% of his business went, it "wouldn't be viable", and claimed the prime minister was "breaking the tools we need to produce food".

His son, Harry, had been getting lots of experience on the farm, and hoped to go to agricultural college in the future.

"You've seen Harry, you've seen how keen he is to be part of the farm, and I wonder whether it's really worth him doing it now," Mr Cornock said.

"Ultimately, when I pass, unless there are ways to get around this or put something in trust, he will be saddled with a massive debt on this place."

The changes will not come into force until 2026, and farmers inheriting assets would be given up to 10 years to pay the tax.

Steve Reed, the Secretary of State for the Environment, Food and Rural Affairs, said the "vast majority" of farmers will not be affected by changes.

Writing in the Telegraph, he said that "only the richest estates will be asked to pay".