Farmers protest: why are farmers and Jeremy Clarkson protesting in London today over Inheritance Tax changes?

• Farmers are protesting in London against proposed changes to inheritance tax
• From March 2026, farms worth over £1 million will face a 20% inheritance tax on the value above this threshold
• Many farmers fear they won't have enough savings to pay the tax without selling assets
• The Government says the changes are necessary to fill a £22 billion budget gap and insists most farms won't be impacted
• There are concerns that the protests could disrupt food production, though the Government has contingency plans in place

Farmers have hit the streets of London today (19 November) in a heated protest against proposed changes to inheritance tax affecting agricultural landowners.

Previously, farming businesses didn't have to pay inheritance tax - a tax that is charged on the value of someone's estate (property, money, etc.) when they pass away - on land and property used for farming.

But from March 2026, farms worth more than £1 million will have to pay inheritance tax, albeit at a rate 20% on the value above £1 million, instead of the usual 40% rate.

The Government says that the actual threshold for paying this tax could be as much as £3 million when certain exemptions are considered, such as allowances for each partner in a couple and for the farm property itself.

The changes have been made after the Government said it had to make "tough decisions" to address a £22 billion budget gap left by the previous government.

But how exactly do the changes affect farmers, and what do the protests mean for food production in the UK? Here is everything you need to know.

How many farmers will be affected by the changes?

The Treasury says that in 2021/2022, 27% of estates claiming agricultural property relief (APR) were worth more than £1 million. This suggests that nearly three-quarters of farms would not be affected by the new tax rules.

They estimate that about 500 estates each year will have to pay inheritance tax under the new changes.

But the National Farmers' Union (NFU) points out that farm businesses also qualified for a separate business property relief, which covered things like crops, livestock, machinery, and other businesses on the farm, such as camping sites.

Now, both types of relief are combined into one, with a £1 million allowance before inheritance tax applies, which could mean more farms will be affected.

The NFU highlights that 66% of farm businesses in England are worth more than £1 million, according to the Environment Department (Defra).

But the Government argues that just looking at the value of assets doesn't mean a farm will automatically be taxed. It depends on the specific details of each farm’s situation.

Why are farmers so angry?

The NFU says that while farms may appear to be worth a lot because of their land and assets, the actual income from farming is often very low.

This means farming families may not have enough savings to pay inheritance tax without having to sell some of their land or property.

NFU president Tom Bradshaw said that the change puts older farmers in a difficult position, as they might not live long enough to use exemptions for gifting assets or passing on their property in a way that avoids tax.

He also warned that the changes could discourage investment, as farmers might avoid increasing their assets if it means they could face inheritance tax on them.

There are also concerns that tenant farmers could be affected if landowners no longer receive tax exemptions for land used for farming.

What do the protests mean for food production?

The Government has contingency measures in place to protect food supplies if farming protests intensify, the policing minister Dame Diana Johnson has said.

Asked if she could guarantee that there will not be food shortages leading up to Christmas, she told Sky News: “Issues around food security are obviously national security issues.

“There are plans in place, there are contingencies always in place to deal with that, but I’m confident that won’t happen.”

What do you think about the proposed inheritance tax changes and the ongoing protests? Will they have a significant impact on farmers and food production? Share your thoughts and join the conversation in the comments section.