Tax change 'terminal' for farm of four generations

A farmer said the change to inheritance tax could be "pretty terminal" for his family's farm.

Tom Martin's family have farmed near Peterborough for four generations, but he said he would be fearful for their future if the change went ahead.

Cambridgeshire County Council recently agreed to write to the government to call on it to "stop the Family Farm Tax" in a vote that divided councillors.

The government has said the change was only expected to affect about 2,000 estates each year and its commitment to farmers "remains steadfast".

Mr Martin, a National Farmers' Union member, said farming was a "massive privilege" as he got to "make a difference all the time," but changes to tax would affect the farming family in three ways.

First, if his parents died, the farm would not be able to continue, as they did not make enough profit to pay 20% inheritance tax.

"It is pretty terminal and pretty sad," he said.

"[Secondly] we are proud and passionate that we do a lot for the environment – I am currently towards the end of planting 600 fruit trees.

"We do a lot of things in the local community, but if I invest now in anything, I lose the funds to be able to pay the inheritance tax."

Thirdly, he said rather than thinking about farming, producing food, helping the environment, and how to make a difference, the tax occupied most conversations.

From 6 April 2026, the full 100% relief from inheritance tax will be restricted to the first £1m of combined agricultural and business property.

Landowners over this would pay inheritance tax at a rate of 20%, rather than the standard inheritance tax rate of 40%.

Cambridgeshire County Council passed a motion calling on the government to "stop the Family Farm Tax", according to the Local Democracy Reporting Service.

It divided councillors with 16 voting in support, 13 abstaining, and seven voting against it.

Mr Martin praised the decision as it was "really important for the government to hear from all quarters," and invited councillors who objected or abstained to visit his farm.

Mark Goldsack, a Conservative councillor who proposed the motion, said the Chancellor was trying to "tax the rich", but argued an "awful lot of innocent people, not intended targets, are getting hit and they are getting hurt".

Piers Coutts, a Liberal Democrat councillor, said he supported the government's aims to "reduce tax loopholes", but felt there were unintended consequences.

Labour councillor Elisa Meschini said the government was trying to "repair the crumbling public realm" after 14 years of austerity and there was a "unanimous call for those with the broader shoulders to bear most of the burden".

The government says the increase is necessary to fund improvements to public services.

It says the rate being charged to farmers is half the normal rate for inheritance tax and it says with other reliefs many families will only have to pay tax on farms worth more than £3m.

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