Family farms have been urged to seek expert advice following the 'disastrous' changes to inheritance tax announced in last week's budget.
It follows major changes to agricultural property relief and business property relief, which will be levied at a rate of 20% on the value of agricultural assets over £1m.
The move has sparked fury and warnings it will end farms that have been in families for generations, as well as risking national food security.
Now experts at mfg Solicitors have said it was 'vital' for farming families to seek professional advice regarding succession planning.
Farming families’ wills and partnership agreements should be reviewed and updated where necessary, according to the firm.
Alex Phillips, partner and head of the agriculture at mfg, said farming families were 'feeling particularly let down' following the chancellor’s budget.
“You can feel the mood and despair just by looking at social media, with one farmer claiming that he can no longer afford to die, and the NFU President scathingly referring to the budget as disastrous for the future of family farms."
Farmers believe the government has broken pre-election promises after Sir Keir Starmer - then-leader of the opposition - assured farmers in 2023 that he understood the existential risk to British farming and the huge implications of losing working farms.
Victoria Vyvyan, president of the Country Land and Business Association (CLA), referred to the budget as 'nothing short of a betrayal' after Labour made these assurances on IHT reliefs.
“These changes could severely hamper a farmer’s ability to pass the farm onto their children and grandchildren without having to sell a significant part of the land to pay tax, which for many may not be possible without risking the viability of the entire farm.
“The chancellor claims that only 6% of estates will pay IHT this year, but the general consensus amongst agricultural professionals is that in reality, all but the smallest of farms will be affected at a time when the industry is looking to the government for support."
She added: “Families will now need to seriously consider their futures to ensure the preservation of their farms, many of which have been in their families for several generations, as well as the general future sustainability of their businesses and the country’s food production.”
Sally Smith, mfg Partner and head of the tax and estate planning team, said farming families should seek professional advice about their inheritance tax and succession planning.
“Given the significant changes to agricultural property relief, all farming families’ Wills and Partnership Agreements should be reviewed and updated where necessary.
“Farming families are also likely to want to consider lifetime gifting as part of their succession planning.
"It is very important they obtain thorough advice from their lawyers, accountants and land agents, preferably all working together.”
It comes as farmers across the UK are set to descend on central London later this month as part of a rally against the budget.
Organised by the NFU, the 'mass lobby of MPs' will take place at the Church House conference centre in Westminster, on Tuesday 19 November.
Meanwhile, over 150,000 people have signed a petition by the union calling on the government to reverse its decision on agricultural property relief.
