Britain’s family farms face being “silently dismantled” by an outdated inheritance tax system unless the government takes urgent action, the National Beef Association (NBA) has warned in an open letter to the chancellor.
Inheritance tax (IHT) is charged at 40% on estates worth over £325,000, with farmland usually qualifying for agricultural property relief (APR) or business property relief (BPR).
However, the Treasury has confirmed sweeping reforms from April 2026, introducing a £1 million cap on the value of assets eligible for full relief — a move that the NBA and others warn could hit family farms hardest.
The NBA says the system, even before these reforms take effect, is pushing family farms to the brink, forcing them to sell land, divide holdings and divert investment away from food production and sustainability.
The body's chief executive Neil Shand said the issue was now critical for thousands of farming families who are being penalised simply for trying to preserve their legacy.
“This isn’t about privilege – it’s about permanence,” he said. “Family farms are the backbone of rural Britain. They feed the nation, care for the land, and support local economies.
"But right now, they’re being punished for trying to pass on what they’ve built. Unless the government rethinks inheritance tax, we risk losing not just farms, but futures.”
In its open letter, the NBA warns that the current IHT framework is creating unsustainable pressure on multigenerational family farms, many of which are being broken up or sold off to meet tax liabilities.
Shand cautioned that unless reform is introduced soon, IHT could lead to “the slow, silent dismantling of the family farm”, eroding not only livelihoods but also the landscapes and legacies that define rural Britain.
The NBA argues that the existing tax regime fails to recognise the unique, asset-rich but cash-poor nature of farming, where most wealth is tied up in land and livestock rather than disposable income. As a result, families seeking to pass holdings between generations often face crippling financial strain.
The association is urging the chancellor to launch a full and transparent review of how IHT affects farming businesses and rural communities.
The call comes amid wider industry concern that uncertainty over agricultural tax reliefs — combined with inflation and rising input costs — is undermining investment in sustainability and long-term food production.
The NBA stressed that its demand was not a plea for special treatment, but for fairness and recognition of the vital role family farms play in feeding the nation and maintaining rural economies.
“We are not asking for exemptions or privileges,” the letter states. “We are asking for a system that values food production, recognises the social and environmental contribution of family farming, and protects the rural communities that sustain it.”
The NBA’s intervention adds to growing calls from across the agricultural sector for tax reform that supports continuity and resilience in family farming.
The organisation warned that if the current trajectory continues, the UK risks a decline in independent farm ownership, reduced domestic food output, and further rural depopulation.
Shand concluded that without urgent reform, inheritance tax could dismantle the very businesses that feed the nation and sustain its countryside.
