Farmers get backing on fight against tax burden

There's cross party support in the council chamber

A call for the government to reconsider its plans to introduce inheritance tax on some farmers has been made by councillors in West Devon who say the move is “a sledgehammer to crack a nut”.

Cross-party support was given by West Devon Borough Council to a motion by Cllr Holly Greenberry-Pullen (Lib Dem, Tavistock North) to write to chancellor Rachel Reeves and environmental secretary Steve Reed urging them to modify the agricultural property tax plans on family farms.

The council is asking for “meaningful engagement” between Westminster, farming organisations and rural councils to develop policies that support, rather than penalise, the farming sector.

Cllr Greenberry-Pullen, who recently attended a protest by farmers in London, many of whom were from Devon, said the income of farms did not equate to the tax burden their families were going to inherit.

From April 2026, the government intends to introduce inheritance tax of 20 per cent on estates with farming assets worth more than £1 million.

The standard rate for other people is 40 per cent of assets over £325,000, or £500,000 for people passing on wealth that includes the family home to children or grandchildren. The tax has to be paid immediately.

The government says farmers’ families will be able to pay the tax relating to farm agricultural assets in instalments over 10 years, interest free. Additionally “two people passing on farmland, depending on their circumstances, can pass on up to £3 million without paying any inheritance tax.”

It claims the reforms are fairer than the current system as the largest seven per cent of farms account for 40 per cent of the total value of agricultural property relief, costing the taxpayer £219 million.

But rural communities in Devon have disputed the prime minister’s claim that only 25 per cent of farms, owned by the wealthiest landowners, will be affected.

They say that farms which have been in families for generations are “asset rich but cash poor” with the value of viable farms exceeding the cap set by government.

Cllr Greenberry-Pullen said the impact of the tax could be that many farms would have to close down as they don’t have the money to pay the tax bill.

“Local farms are the backbone of rural communities, it’s not just about produce but also about the communities that are affected by farming.”

She said large companies were “waiting in the wings” to buy up farmland but they didn’t have the rural stewardship and knowledge that local farmers who had been doing this work for generations had.

“This is a broadbrush approach to agricultural property relief and business property relief and has not been thought out properly,” she said.

Cllr Chris West (Lib Dem, Burrator) said: “I think we accept within this room the role that agriculture plays in our community is huge… it has tendrilled everywhere.

“We have to acknowledge that this tax is basically a sledgehammer to crack a nut. It’s aimed at trying to remove a situation where we have wealthy individuals trying to come in and take advantage of property tax rules. But by doing this the government is going to impact small to average sized farms.”

He said the area had already lost many farms as the population ages and he does not wish to see more go.

Cllr Neil Jory (Con, Milton Ford) said farming is “the glue” that held rural communities together. “We should be lobbying if nothing else to show support. I would advocate some meaningful engagement too.”

Cllr Lynn Daniel (Green, South Tawton) said the council had showed its support for farmers by issuing grants under the Shared Prosperity Fund and is helping 20 farmers on decarbonisation projects.

“This motion reiterates that we are a council that cares,” she said.