Farmers hit back at accusations of tax avoidance

Agricultural Property Relief

Farmers have hit back against claims that they are trying to avoid paying tax by protesting against changes to Agricultural Property Relief (APR).

With 'lazy comments' appearing on social media that farmers should 'stop complaining and pay their taxes', the industry has spoken up about the potential devastating consequences of Chancellor Rachel Reeves' Autumn Budget changes.

READ NOW: Government set to unveil consultation on land use framework

Food security and health

Far from avoiding tax, farmers have said they pay the same taxes like 'everyone else', but added that 'less viable and non-existent' farm businesses could have a detrimental impact on food security and health. 

Prescot farmer and YouTuber Olly Harrison said the changes could result in communities, businesses, livelihoods and families being broken apart by the swift stroke of a pen.

Inheritance Tax changes

In a week when AHDB added its voice to concerns that more than 42,000 farms over 124 acres could be impacted by Inheritance Tax changes – far from the Office for Budget Responsibility's figure of 500 – the pressure continues to build on the Government to listen and consult with the sector.  

LISTEN NOW:

Olly Harrison

Mr Harrison said he believed that Inheritance Tax should be scrapped completely for all individuals and businesses. 

"We pay taxes like everyone else," he added.

"We pay it on our wages, our National Insurance Contributions and our profits.

"What we are angry about is the Inheritance Tax. It is cruel.

"It taxes you after you have died, which our children will have to pay.

"I do not think anyone should pay it."

Farmland prices

The arable farmer said an inflated value of farmland prices today has not provided a fair reflection of the on-farm investment which, for many, has spanned over generations and hundreds of years.

Pledge your support: Save Britain's Family Farms

"Farmland has a big value because we are not making any more of it," Mr Harrison said.

"The earning potential from farmland has nothing to do with the value that it has.

"So on my father's death, or my death, all the assets would be worth what they are on paper, not what they can generate, and 20% of that value would have to be paid over. 

Interest on assets

"Bearing in mind several generations have built the buildings on the farm, whether it was my father or my great-great-great grandfather, we are going to be taxed at compound interests on assets, which is not sustainable.

"If we are only making a quarter of a percent profit on investment, in a good year, how are we expected to spend 20%, which equates for 2% each year for 10 years, if we can pay it back interest free?

"It is not sustainable.

"What other business on the death of a partner would be taxed?"

When the 'core business' of farming should be to produce food, Mr Harrison said a tax bill which could place pressure on farmers to sell their land could have a 'detrimental impact'.

"The core business of farm [businesses] is to grow food," he added.

"If we do not grow food in the UK, we have to import it at a cost.

READ NOW: Scottish family on This Farming Life aim to showcase the good, the bad and the ugly

Food security

"It is not good for the environment from a carbon footprint point of view, and it is not good for food security if anything went wrong in the world.

"We all saw what happened during Covid, how fragile food suppliers were.

"So, when someone says shut up and pay your taxes: we do.

"We just cannot afford to pay tax when we are dead without [it meaning we have to] stop farming."

The farming YouTuber has estimated that his children may have to sell around 30% of the farm business in order to pay an Inheritance Tax bill in the future.

He said: "When you think we have lost money over the last few years, how are my kids going to keep going forwards if they have lost 30% of the tools available to them?

"It is poorly thought out.

"We want the Government to sit down with us [because] we can show [them] our figures and accounts.

"We want to come up with a solution that works for everyone.

NHS

"What they hope to generate from the tax change could only run the NHS for less than 24 hours.

"If we need to find a better solution which allows agriculture to thrive and be profitable, and paying Income Tax, it could outweigh the family farm tax.

Elderly farmers and well-being

"We do not think it is right that old people are wishing they were dead by April 2026.

"We need an amnesty to stop these people from thinking about taking their own lives."

Staffordshire farmer Clive Bailye said he had had difficult conversations with his parents on the issue of tax changes and the impact it has had on their health.

"Both my mother and father have suggested the best thing they can now do is 'not be here' in April 2026," he added. 

"Can you imagine how hard it is to hear your parents talk like that? 

READ NOW: Welsh Labour MP stands up for elderly farmers over family farm tax

'Moving the goal posts'

"Both have paid significant tax all their lives, both have planned for the future of the business that they made personal sacrifices to build, and the Government have moved the goal post in their final years.

"This is a very real [issue] which must be addressed. 

"Has a Government ever before created a policy that financially incentivises death before a certain date?"

Hereford farmer Martin Williams said dialogue with the public and the Government was crucial in overturning the tax and also raised concerns on the well-being of those impacted.

"There should be at least an amnesty for those with no way of managing this situation," Mr Williams said.

"To be better of dead is no way to run a Government."

READ NOW: Elderly farmers who live past 75 could be charged over 65% in tax