Inheritance Tax Changes — What They Could Mean for British Family Farms

Time is ticking for the UK’s agricultural sector to make its voice heard.

Proposed changes to Inheritance Tax (IHT) reliefs, currently under review in Westminster, could significantly affect family-run growing businesses across the country — including valued suppliers to S. Thorogood & Sons, who form the backbone of British seasonal produce.

With the Finance Bill expected to be voted on in Parliament later this year — likely in September or October — concerns are mounting across the industry that reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) will create a “cliff edge” for succession and long-term business viability.

Why the Sector Is Worried

Currently, many growing businesses benefit from up to 100% IHT relief on agricultural and business property — a vital safeguard that allows land and enterprises to pass from one generation to the next without punitive tax bills.

But under the new proposals, this relief could be sharply reduced or restructured, and the April 1st cut-off date looming next year gives little time to adjust.

Critics argue that the changes risk forcing families to break up or sell off land to cover tax liabilities, threatening the sustainability of long-established rural enterprises. As it stands, no clear signal has come from the Treasury or Defra that these concerns will be addressed — despite lobbying from industry leaders and cross-party MPs.

“We’re Duty Bound to Speak Up”

At a recent meeting with growers in Bedfordshire, Shadow Farming Minister Robbie Moore warned that unless pressure is maintained on Treasury ministers, the legislation is likely to pass unchanged. Even members of Parliament who’ve voiced reservations may still back the bill in a vote.

While a report from the Efra Committee has recommended delaying the rollout, there’s no indication that this will influence the government’s current timeline.

What This Means for British Growers

Businesses in the growing sector are often land-rich but cash-poor. The land they cultivate isn’t just a workplace — it’s their livelihood and legacy. If IHT relief is reduced without sufficient transition or adjustment, it could undermine the continuity that supports the UK’s fresh produce industry.

The proposed changes wouldn’t just hit large estates — they would affect small and medium-sized growers, farm shops, and horticultural businesses across the UK. In short, it’s an issue that extends well beyond farming — touching any business passed down through generations.

Is There Hope for a Reversal?

As things stand, the Finance Bill is expected to pass in some form. However, there is talk among opposition parties that a future government could consider reversing the changes. The Conservative Party has pledged to reinstate full reliefs for APR and BPR — but this would require a new mandate and likely wouldn’t happen until after the next general election.

In the meantime, industry leaders are urging all stakeholders — from individual business owners to retailers and suppliers — to speak up, engage with MPs, and push for a more measured, phased approach that protects succession planning.

Why It Matters

For businesses like S. Thorogood & Sons, whose supply chain depends on a network of dedicated and skilled growers, tax policy isn’t just a finance issue — it’s about the future of British produce. These reliefs allow growers to plan long-term, invest in their land, and pass on knowledge and value to the next generation.

We believe that any reform must take into account the essential role that these businesses play in feeding the nation, supporting local economies, and stewarding the countryside.

We encourage our peers, partners, and customers to follow this issue closely. If you're a retailer or wholesaler who values continuity and quality in the supply chain, now is the time to advocate for a fair, workable solution.