Farmers halt investments as new inheritance tax threatens land sales
A CLA survey shows 89% of family farms are postponing projects because the raised inheritance-tax threshold could force them to sell large portions of their land.
The Country Land and Business Association surveyed rural family businesses and found that 89% are abandoning planned investments due to the new inheritance-tax threshold. Projects worth between £50,000 and £150,000+ have been put on hold, and almost 50% of respondents say they would have to sell at least 25% of their land to cover any liability, while 25% would need to part with over half. One farmer explained they are deliberately devaluing their enterprise to lessen the future tax burden for their heirs.
The backlash includes concerns that farms are unable to purchase new machinery or maintain buildings, threatening long-term viability. With Chancellor John Healey’s budget imminent, the CLA is pressing Andy Burnham and Healey to scrap the tax change. Deputy president Joe Evans warned that the measure could undermine growth and confidence in the rural economy.
Why it matters
The tax change could force many UK farms to sell land, jeopardizing food production and rural livelihoods.
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