Richard Cornock, a dairy farmer from Tytherington, has voiced deep concerns over the reintroduction of inheritance tax on agricultural assets, particularly how it might affect the future of his family farm. Starting in April 2026, the government will impose a 20% inheritance tax on inherited agricultural assets valued over £1 million previously exempt from such taxes. This change has left Cornock feeling uncertain about whether passing the farm onto his son, Harry, is a viable option.
The Cornock family farm has been in operation for over 200 years, passed down through generations of farmers who have always relied on the ability to transfer agricultural assets without incurring significant tax burdens. Cornock explained that many farmers, especially those running small operations like his, are asset-rich but income-poor. While their land and buildings may hold substantial value, the day-to-day income from farming often doesn’t match the worth of the assets. For these farmers, the prospect of paying a large inheritance tax upon passing the business to the next generation could be financially devastating.
For Cornock, the new inheritance tax is a significant challenge. If 20% of the value of his farm is taken in tax, he fears the operation will no longer be financially viable. This could severely limit his son Harry’s ability to take over the business. Cornock has spent years teaching Harry about the ins and outs of farming, hoping that one day his son will continue the family legacy. However, he now wonders whether Harry will be burdened by insurmountable debt if he inherits the farm. Cornock questioned whether it is worth pursuing a career in agriculture given the challenges posed by the inheritance tax, especially considering that farming itself often doesn’t generate a large income.
The new policy has stirred considerable concern within the farming community. Cornock’s fears are not isolated, as many farmers worry about how the tax could hinder the sustainability of their businesses, particularly in an industry where profit margins are already slim. While the government has assured that only the wealthiest estates will be affected, for smaller farmers, the introduction of the inheritance tax could still pose a serious financial strain.
In response to the changes, the government has provided some relief by allowing farmers to pay the inheritance tax over a period of up to ten years. This gradual payment plan is intended to ease the burden on families inheriting large agricultural estates. However, for Cornock and others in similar positions, this still doesn’t solve the fundamental issue of whether the tax makes it financially feasible for the next generation to inherit and sustain the family farm.
Beyond the immediate financial challenges, there is also the question of whether the tax might discourage younger generations from pursuing farming at all. Cornock’s son Harry has shown a keen interest in the farm, gaining hands-on experience and hoping to attend agricultural college. But as Cornock considers the future, he fears the financial weight of the inheritance tax could drive Harry away from farming, despite his enthusiasm. The decision to follow in his father’s footsteps might no longer seem like a realistic or sustainable choice.
Farmers like Cornock argue that the changes to inheritance tax are disruptive to the long-standing tradition of passing down family farms without the fear of crippling taxes. They emphasize that many farms operate on tight margins, and the introduction of a significant tax could undermine their ability to stay afloat. The farming community, already facing numerous pressures from fluctuating market conditions and changing climate patterns, sees the inheritance tax as one more obstacle that could make it even harder for the next generation to carry on the work that has been passed down for centuries.
In conclusion, while the government has assured that most farmers will not be impacted by the tax, the uncertainty it creates for those who will be affected raises important questions about the future of agriculture in the UK. For many, farming has been a way of life for generations, but with the new inheritance tax looming, families like the Cornocks are left to reconsider whether it is still feasible to pass down their farms to the next generation.
