UK growers are observing a shift as ministers reconsider inheritance tax reforms, which have affected the rural sector recently.
The reforms, unveiled last autumn, aimed to remove tax exemptions for family-run farms. From April 2026, farms valued over £1 million were to encounter a 20% inheritance tax, prompting reactions from across the sector. Concerns arose about selling productive farmland to meet tax obligations, threatening continuity and future production.
The reaction was prompt. Many farmers protested, campaign groups became active, and industry leaders highlighted potential impacts on farming families, noting many are asset-rich but cash-poor. Reports suggest the government may adjust its approach. A working group has proposed raising the tax threshold from £1 million to potentially £10 million, shielding most family farms and businesses from charges.
Additional measures are under government consideration, including delaying implementation or allowing land or business gifting without triggering taxes. Industry bodies view this development as a result of their lobbying efforts, emphasizing that while tax reform is necessary, initial proposals threatened domestic food security.
For fresh produce, higher thresholds could allow family operations to continue without financial challenges, supporting the UK's supply chain and maintaining horticultural expertise. Official changes remain unconfirmed, but the current outlook appears more favorable than before. The industry will monitor upcoming announcements, hoping for pragmatic solutions. As developments unfold, growers consistently advocate for succession, land protection, and stability for farming families to continue feeding the nation.
Source: FreshTalk Daily
