Somerset MP fears ‘cruel’ impact of Inheritance Tax on farms

Changes to Inheritance Tax were announced in the Autumn Budget and are set to take effect on April 6, 2026. The policy introduces a 20% tax on agricultural assets over £1 million. 

Ashley Fox, MP for Bridgwater, met with representatives from the National Farmers’ Union (NFU) last week to discuss the potential impacts on local farmers in Somerset.

One fourth-generation farmer shared with Ashley that he would likely need to sell significant portions of his land just to meet the tax burden. "Farming is about growing food and feeding people," the farmer noted, "not about profit, but a way of life."

Speaking about the proposed changes to Inheritance Tax, Ashley Fox MP said: “Labour’s attack on family farms in the Budget is disastrous for farming, rural communities and our economy. These changes threaten to undermine the UK’s food security.”

Mr Fox fears that the changes could have such an impact that family farms in Somerset will be sold off to cover any subsequent tax bill.

He continued: "Thousands of farms across Somerset, and the UK, will be impacted by this cruel tax regime, the effects of which will be felt for decades to come.”

In the Autumn Budget 2024, the Labour government maintained that the changes to Inheritance Tax were necessary to make the Inheritance tax system fairer, by restricting the generosity of agricultural property relief and business property relief for the wealthiest estates.

Bridgwater’s MP has expressed his scepticism of this justification. He added: “The average farm size and land values mean this tax will impact many small to medium-sized family farms, not just large estates. This measure shows a lack of understanding of farming and its economic realities.”

Mr Fox has said he will continue to urge the government to reconsider the policy, which he believes undermines the viability of family farming across Somerset and the UK.