Sussex: Farmers to lobby for reverse of inheritance tax

Martin Hole, who farms at Pevensey, is one of hundreds of Britain’s farmers and growers who will take part in a mass lobby of their MPs on November 19.

The action aims to highlight the impact of the recent Budget on their farms, specifically the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).

The government plans to reform both from April 2026, meaning that farm businesses will subject to inheritance tax of 20 per cent of all agricultural assets valued over £1 million.

This means any farmer planning to pass on their business to a family member will be hit with a huge tax bill. Until now, this has been tax free.

The proposed lobbying event will see 1,800 National Farmers’ Union (NFU) members, in three rotations of 600, lobby parliamentarians at Church House Westminster.

The NFU has warned the changes announced in the Budget could increase food costs to consumers, adding pressure to many still experiencing the cost-of-living crisis.

Farmer Martin Hole is calling on the government to reverse the tax hike (Image: NFU) Mr Hole, NFU East Sussex chairman, said: "This Budget is a huge blow for family farmers here in Sussex and across the South East.

“The changes to APR are expected to hit 66 per cent of farm businesses in England, including many in this region.

“If the government thinks this is a tax on the wealthiest people in society, it is very much mistaken.

“Just because a farm business has valuable assets, it does not mean that the farmers themselves are wealthy.

“The average farmer’s return on capital investment is less than one per cent.

“This is a tax on hard-working family farms and puts the future of many farm businesses under threat."

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The union claims that the Treasury has got its figures wrong.

A spokesman for NFU said: “The Treasury states that 73 per cent of APR claims are below £1 million and so would be unaffected. However, Defra’s own figures show that only 34 per cent of farms are under £1 million net worth.

“The Treasury’s figures are based on past APR claims and do not consider farms that have also claimed BPR for diversified aspects of their businesses.”

There are widespread concerns this could force farmers to sell their family farms to pay the inheritance tax bill.

MP James MacCleary is calling on the government to reverse the tax hike Last week, Lib Dem MP for Lewes James MacCleary became one of many MPs calling on the government to reverse the tax hike.

The government has previously said that 27 per cent of farms will be affected by the changes proposed, which could potentially affect 66 farms in the Lewes constituency.

Mr MacCleary said: “Sussex is home to an incredible array of farms, from top-tier beer and wine producers to those providing essential food for our communities. 

“This government’s new tax on family farms is a disastrous blow that risks undermining these essential pillars of our rural economy.

“It sadly could be the death knell for some family farms.

"The Chancellor must urgently reverse this policy, scrap the family farm tax and consider the Liberal Democrat proposal to invest an additional £1 billion annually in support for farmers, ensuring a strong, sustainable future for British agriculture."