Over 125,000 UK farmers have signed a petition aimed at reversing the recent changes to inheritance tax in the country.

Britain’s National Farmers’ Union (NFU) set up an online petition in response to changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) announced by the British government.

The tax new regime means that an effective rate of 20% will now be applied on assets over £1m which is targeted at private and institutional investors that used land as a vehicle to minimise their tax exposure.

A spokesperson for the NFU said that these changes will deal a “hammer blow” to farm families.

“After decades of tightening margins, record inflation, extreme weather and increased production costs, many farmers and growers are at breaking point, unable to absorb any more cost burden.

“This matters because it has the potential to reduce UK food production and alongside the increases in employment costs, the cost of food production rises, with many people still facing a cost-of-living crisis.

Reversal

In addition, where borrowings are needed to cover the cost of inheritance charges, there is a further £81,000 (based on interest rate of 6.1%) in interest charges to be paid.

The union have warned that many smaller farm holdings and houses, even with a few viable acres, would be worth over £1m and would be affected by the tax.

NFU president Tom Bradshaw is urging their government to overturn the policy change.

“There’s still time for the Government to accept they’ve got this wrong, and my message to ministers is that they should do the right thing and reverse this awful ‘family farm tax’.”