Farmers in the UK staged a massive tractor march on the streets of London to protest against the new Farm Inheritance Tax (also called “Family Farm Tax” or “Death Tax for Farmers”) introduced in Budget 2025.
SNPNEWS.IN News (Gurmail Kamboj): On Wednesday, 26 November 2025, just before UK Chancellor Rachel Reeves presented the Budget, thousands of farmers marched towards London with their tractors. However, the Metropolitan Police imposed a ban late on 25 November on bringing tractors into Whitehall. As a result, massive traffic jams occurred around Trafalgar Square and Westminster.
During the protest, around 20 tractors were stopped, and several farmers were arrested. Thousands of farmers gathered on foot in Whitehall, waving flags, holding posters, and chanting slogans. This demonstration was part of a year-long campaign in which farmers have been warning that this tax will destroy family farms and make farming impossible for future generations.
The protest was mainly against the proposed changes to Inheritance Tax on agricultural assets, which from April 2026 will impose a 20% tax on farmland and farm businesses valued over £1 million.
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This new Farm Inheritance Tax is what farmers are calling the “Family Farm Tax” or “Death Tax for Farmers”.
From 1984, agricultural land and farm businesses in Britain were completely exempt from Inheritance Tax (through Agricultural Property Relief & Business Property Relief). This allowed children to inherit the family farm without paying any tax.
New Rules (from April 2026):
● Up to £1 million (approx ₹11 crore) in farm value: 100% tax relief (no tax).
● Above £1 million: Farmers will pay 20% tax (half the normal 40% rate as a concession).
● For married couples: Full relief up to £2 million when both pass away and the farm is transferred to children. Above that, 20% tax applies.
In Britain, many family farms (land + machinery + livestock) are valued at £2–3 million or more.Upon the owner’s death, the family may have to pay £200,000–£500,000 in tax. Farmers usually don’t have that much cash on hand, so they would be forced to sell part of the farm or take huge loans. Farmers say this will end family farming and the next generation will leave agriculture.
Important: If the owner transfers the farm as a gift while still alive (to children or family members), no inheritance tax applies.
Previously, the £1 million allowance could be transferred between husband and wife. This meant that after the first spouse died, the surviving partner could pass on up to £2 million tax-free to the children, and when combined with the normal nil-rate band, up to £2.65 million could be passed on completely tax-free.
The Labour government calls this a tax on “rich farm owners”, but farmers say: “We are asset-rich but cash-poor”.The government claims it will affect only 1% of the largest farms, but farmers’ organisations say more than 70% of farms will be affected.