Nearly half of South Devon farmers face an inheritance tax bill of at least £300,000 because of the Government’s changes to Agricultural Property Relief, according to a new survey.
In the Autumn Budget, the Chancellor announced that from April 2026, inherited agricultural assets worth more than £1m, which were previously exempt, will be taxed at 20%, half the usual rate.
Following this announcement Caroline Voaden, MP for South Devon, sent out a survey to every farmer in her constituency, and the results she received contrasted sharply with the Government’s data.
When announcing the policy change, the Chancellor stressed that 72% wouldn’t be impacted by these changes, with the Prime Minister later chiming in that the change wouldn’t affect the “vast majority”
of farmers.
However, according to Caroline’s survey, 85% of South Devon farmers believe they’ll be affected by the reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR).
Of those affected, 44% face a bill of at least £300,000, with the average bill standing at £637,000 and the highest at £3m.
In the survey, farmers, some of whom have been in business since shire horses worked the land, expressed their concerns about the future viability of their farms, with 94% urging the Government to rethink
the policy.
The Liberal Democrats have consistently called for this too, pointing out not only the policy’s impact on family farming but also on the UK’s food security as well.
In November, Caroline met with South Devon farmers in Westminster to hear their concerns about the changes to APR. She has spoken in multiple Westminster Hall debates about this topic and asked the
Farming Minister to reconsider the policy five days after it was announced.
Caroline Voaden, MP for South Devon, said:
“Ever since this policy was announced, the Government has repeatedly shown it has its head in the sand about the true number of farmers that will be affected. My survey offers a snapshot of not only
what’s happening in South Devon but across the country as farmers try and figure out how they’ll cover these eye-watering costs.
“I appreciate the concerns about the wealthy buying up large sums of land to avoid tax, but our survey shows this is not a prevalent problem among South Devon farmers. Nearly all plan to pass their
farm onto their direct descendants. Yet many will not be able to do this because of this policy.
“This tax will only raise small amounts of money for the Exchequer, but the impact on rural communities will be huge. Farms that have been in families for generations will have to be broken up to cover
the costs. It will have a worrying impact on food supply and on the rural economies who depend on a farming backbone.
“Along with my Liberal Democrat colleagues, I’ll continue to campaign for farmers and urge the Government to reverse course.”
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