Why are farmers like Jeremy Clarkson protesting about inheritance tax?

A “mass lobby” event will be held in London to pressure MPs about the changes. A separate splinter protest is expected to pull in thousands of attendees.

LLANDUDNO, WALES - NOVEMBER 16: Farmers stage a protest in front of Venue Cymru against a rise in inheritance tax on November 16, 2024 in Llandudno, Wales. From April 2026, farms worth more than £1m will face an effective inheritance tax rate of 20%. Welsh Labour are holding their first conference since Eluned Morgan became the leader of Welsh Labour and the First Minister of Wales. (Photo by Matthew Horwood/Getty Images)
Farmers stage a protest against a rise in inheritance tax outside the Welsh Labour Conference in Llandudno, Wales, on Saturday. (Getty Images)

 

Jeremy Clarkson is expected to attend large demonstrations by farmers in London on Tuesday in protest against government changes to inheritance tax.

The former Top Gear presenter, who now fronts the reality TV series Clarkson's Farm, is recovering from a back injury in the latest of his health battles, but the 64-year-old told The Telegraph he hoped to "get there somehow".

Between 10,000 and 40,000 farmers are expected to descend on Whitehall, angry at what they call the "absolutely unacceptable" changes to inheritance tax. Separately, the National Farmers’ Union (NFU) is holding a mass lobby of MPs by 1,800 of its members. It follows a similar protest outside the Welsh Labour Conference in Llandudno at the weekend.

Under the plans announced by chancellor Rachel Reeves in last month's budget, from April 2026, inherited agricultural assets worth more than £1m will have to pay inheritance tax at 20% on anything above that figure, having been previously exempt.

Jeremy Clarkson during a Q&A event to launch the final episode of The Grand Tour, at BBC TV Centre in London. Picture date: Tuesday September 10, 2024. (Photo by Ian West/PA Images via Getty Images)
Jeremy Clarkson is expected to attend a large demonstration of farmers in London on Tuesday. (PA)

In 2021, Clarkson told The Times newspaper that avoiding inheritance tax was "critical" in his decision to buy land.

A procession on Tuesday to Parliament Square will be headed by children on toy tractors, as organisers have told those attending not to bring their farm machinery.

Here, Yahoo News UK outlines what we know about the upcoming protest…

A sign in a field by the M40 near Warwick, protesting the changes to inheritance tax (IHT) rules in the recent budget with the new taxes on farms worth more than £1 million. Picture date: Monday November 18, 2024. Farmers have reacted over the inheritance tax changes for farming businesses, which limit the 100% relief for farms to only the first £1 million of combined agricultural and business property. For anything above that, landowners will pay a 20% tax rate, rather than the standard 40% rate of inheritance tax (IHT) applied to other land and property.
A sign in a field by the M40 near Warwick, protesting the changes to inheritance tax rules around farms in chancellor Rachel Reeves's recent budget. (PA)

The National Farmers’ Union (NFU) has organised what it calls a “mass lobby” event for its members to petition MPs to overturn changes in the budget to agricultural property relief and business property relief.

Inheritance tax relief allows farmers to pass on their land and property tax-free to their families, either within their lifetimes or in their will.

But at the budget, the chancellor announced the 100% relief for family farms would be limited to only the first £1m of combined agricultural and business property.

Eton, UK. 7th November, 2024. A farmer ploughs a field in Eton, Windsor, Berkshire. Following the announcement by Chancellor Rachel Reeves in the recent budget that the Government plan to remove the Agricultural Property Relief inheritance tax exemption from farms worth more than £1m, many farmers are furious. A petition has been handed into 10 Downing Street asking the Government to reverse this decision. Farmers are planning protests in London this month about the new IHT rules. Credit: Maureen McLean/Alamy
Many farmers say new inheritance tax rules will force them to sell up. (Alamy)

For anything above that, landowners will pay a 20% tax rate, rather than the standard 40% rate of inheritance tax (IHT) applied to other land and property.

This has been dubbed a “tractor tax” and the upcoming protests on the streets of Westminster – the heart of politics – are a reflection of the anger felt within the farming community.

Many farmers and farming unions argue that while Reeves's policy is aimed at wealthy landowners, it also risks harming family-owned farms, with some potentially forced to sell their farms to pay IHT bills.

NFU president Tom Bradshaw said that “just because a farm is a valuable asset it doesn’t mean those who work it are wealthy”. He also warned that the higher costs for farmers will trickle down to consumers, forcing food prices to go up.

Analysis by the Country Land and Business Association (CLA) suggests a “typical” arable farm of 200 acres, making a profit of £27,300, would face an IHT liability of £435,000.

LONDON, ENGLAND - OCTOBER 30: Chancellor of the Exchequer, Rachel Reeves, poses with the red Budget Box as she leaves 11 Downing Street to present the government's annual budget to Parliament on October 30, 2024 in London, England. This is the first Budget presented by the new Labour government and Chancellor of the Exchequer, Rachel Reeves. (Photo by Leon Neal/Getty Images)
Chancellor Rachel Reeves made changes to inheritance tax rules in her first ever budget. (Getty Images)

The farm would have to allocate 159% of its profit each year to cover the tax bill, if spread over 10 years, and may lead those inheriting the land to sell as much as 20% of their farmland, the CLA said.

Gavin Lane, the CLA’s deputy president, said the government either “isn’t being honest with the public about the true impact of these reforms, or they don’t understand the nature of rural businesses”.

However, the government contests these claims, with ministers insisting that only around a quarter of farmers – the largest landowners – will be affected.

The proposed event will see 1,800 NFU members, in three rotations of 600, lobby parliamentarians at Church House Westminster.

The NFU said there were “legal issues” preventing members turning up in large numbers on the streets of Westminster.

However, it is estimated that anything between 10,000 and 40,000 farmers could turn out to protest on the streets of London on Tuesday.

Clive Bailye, founder of The Farming Forum, has organised a splinter rally after the NFU said it could not “take responsibility for people in the streets”.

Bailye, an arable farmer from Staffordshire, said he was “totally in support” of the NFU’s event but added it was “very limited”.

He told the PA news agency: “They weren’t organising a rally. They weren’t organising a march-type event. It was becoming very obvious that farmers were desperate for somebody to take the lead and organise something else.”

He added: “We’re not wanting to take that European, French farmer route of burning tyres in the street and inconveniencing everybody..

“We want to keep the public on side. We don’t want to bring the capital city to a stop or disrupt roads.”

In a statement, the Metropolitan Police said: “We will work with any organisation or individual wishing to organise a peaceful protest or demonstration in London and continue to speak with the NFU.

“We are also aware of a separate rally being planned by a group of farmers in central London on the same date. We are speaking with the organisers to work with them as they plan their event.”

Perhaps the biggest name expected at the event will be Jeremy Clarkson, who will be out protesting with farmers, according to The Telegraph.

Clarkson, whose experiences of setting up and running his own farm are filmed for Clarkson’s Farm, has been a vocal critic of the plans set out in the budget and previously said that farmers were “very angry and anxious” about their future.

Jeremy Clarkson at the opening of his new pub, The Farmer's Dog, in Asthall, near Burford in Oxfordshire. Picture date: Friday August 23, 2024.
Jeremy Clarkson, who runs his own farm, will be attending the protests In central London. (PA)

However, it is not known whether he will give a speech at the protest – but Clarkson has said he did not want to lead it.

He wrote on X: “The problem is that I’m not a family farmer and those who support [Keir] Starmer will point this out. Which means that any points scored will be lost in a blizzard of class war shoutiness.”

Clarkson told The Sun that he was “in a fortunate position” but “I feel desperately sorry for other farmers who are very angry and anxious about the future”.

Shadow environment secretary Victoria Atkins said farmers faced a threat from a “city-dwelling socialist government which does not understand or care for the rural way of life”.

She told MPs that farmers “feel that the government is coming after them and their family’s livelihoods, when all they and their ancestors have done is work hard, follow the rules, and fed us”.

Liberal Democrat environment and farming spokesperson Tim Farron said the changes to the tax could lead to “Lakeland clearances” near his Westmorland and Lonsdale constituency in Cumbria, with big corporates buying up small businesses.

He said: “This will be devastating not just for family farms but for rural communities as a whole.”

But environment secretary Steve Reed said that farmers should not “believe every alarming claim or headline” on changes to inheritance tax. The minister said the government is “committed to ensuring the future of family farms”.

He added: “Our reforms will put a stop to wealthy individuals buying up agricultural land to avoid inheritance tax, and in the process of doing that, pricing younger farmers out of buying land for themselves and for their families.”

Downing Street acknowledged there was “a high degree of strength of feeling” about the matter, and urged farmers to consider Treasury analysis, which said the vast majority of their number will not be impacted.