Rachel Reeves announces inheritance tax changes

🥀 Labour has introduce a family farm tax without considering the life-changing impact this cruel measure will have.

⛔️ Not just on farmers but on rural communities as a whole and the food security of this entire country.

Read my piece in the Express 👇https://t.co/cLqggTV99i

— Steve Barclay (@SteveBarclay) October 31, 2024

The Chancellor of the Exchequer, Rachel Reeves, has defended her decision to end the inheritance tax exemption for agricultural estates. In an interview on BBC One’s “Sunday with Laura Kuenssberg,” Reeves stated that the change was necessary because the current system was no longer affordable for the state. Under the new rules, starting in April 2026, only farming assets worth up to £1 million can be passed on tax-free. Assets above this threshold will be subject to inheritance tax.

Labour’s #FamilyFarmTax will stop farms being passed to the next generation:

🚜Threatening our food security
🧑‍🌾 Risking jobs
🌾Leading to food prices rising

Sign the petition to stop this 👇https://t.co/vL3A35gGgT

— Steve Barclay (@SteveBarclay) October 31, 2024

The change aims to close a loophole that allows non-traditional farmers to buy agricultural land specifically to avoid paying inheritance tax. Reeves justified the move by highlighting that 40% of the agricultural property relief benefits were previously enjoyed by just 7% of the wealthiest landowners.

Labour has broken its promise to farmers with the Budget’s controversial changes to inheritance tax relief – effectively sticking two fingers up to the agriculture sector.#Budget2024 #FamilyFarmTax@yorkshirepost👇https://t.co/y7tWFX2Nn5

— Robbie Moore MP (@_RobbieMoore) November 2, 2024

Inheritance tax policy shift

“I don’t think that it is affordable to carry on with a relief like that when our public services are under so much pressure,” she said. Despite assurances from Reeves that many farming families will still be able to pass on estates worth up to £3 million tax-free, anger continues to mount within the agricultural sector. Critics include former “Top Gear” presenter Jeremy Clarkson, who owns a farm. “That could be the last straw for farmers who are already struggling to cope,” Clarkson commented. Both the Conservatives and the Liberal Democrats have criticized the policy change, with the Liberal Democrats dubbing it the “tractor tax.” Reeves has also faced additional scrutiny for her decision not to exempt social care providers or GPs from the rise in employers’ National Insurance (NI), despite warnings from these sectors. Reeves insisted that the Budget was not ideologically driven, stating, “Despite tax rises on the most well-off, businesses, and those with wealth, our measures are focused on ensuring public services remain robust.” With Labour’s substantial majority in the House of Commons, all elements of the Budget are expected to pass unless government ministers decide to reverse their decisions.