BUDGET 2024: A FUTURE FOR FARMERS?

Following the Labour government's budget announcement on pensions, inheritance tax, capital gains tax, and wealth tax, several changes have been made, including adjustments to education funding, farmers' inheritance tax, and investment in education. 

Labour introduced a 20% inheritance tax on farms valued over £1 million, reversing previous exemptions. This move has sparked debate, particularly among farmers, who argue that the new tax burden could threaten the future of family-run farms. Critics claim the policy unfairly targets farming families already under economic pressure. 

Currently, farmers qualify for 100% relief on inheritance tax for agricultural and business property – a mechanism that, while occasionally exploited by wealthy land purchasers, has been crucial in enabling farms to be passed down from generation to generation.