North-east family ‘hit hard’ over farm tax as Keir Starmer vows to look into case

Sir Keir Starmer has vowed to look into the case of an Aberdeenshire farming family who say they been “hit hard” by inheritance tax changes.

The prime minister faces widespread fury from farmers across the UK over his government’s decision to curb inheritance tax reliefs.

Agricultural property has been passed on to heirs tax-free for decades, but a 20% tax on estates over a set threshold will now be payable over 10 years.

Gordon and Buchan Tory MP Harriet Cross raised the case of a family, who farm near Huntly, Aberdeenshire, at Prime Minister’s Questions on Wednesday.

Speaking in the Commons, she said: “Sarah and her family have farmed beef and sheep in my Gordon and Buchan constituency for over 70 years.

“They’d always planned for her sister to continue the family legacy.

“Earlier this year, Sarah’s mother died very suddenly and unexpectedly and she was just 58.

‘Most difficult year of their lives’

“Sarah said to me that despite already having a tragic year, it was made even worse after the budget, saying that changes to Agricultural Property Relief have hit us hard when we’re already struggling with bereavement and trying to cope with losing mum.

“What would the prime minister say to Sarah and family on what has been the most difficult year of their lives in light as well of the family farm tax?”

Sir Keir told Ms Cross he was “grateful” to her for raising the case and advised her to send him the details so he could look into it.

He added: “On the question of inheritance and family farms, it’s important to bear in mind, in a typical case, which is parents passing to a child, the threshold is £3 million and that is why the vast majority of farms will be totally unaffected.”

North-east farmers are among those gearing up for a rally at Holyrood on Thursday over agriculture funding, ahead of the Scottish budget on December 4.

Last week, farmers from across the UK, joined in a show of unity to protest the inheritance tax changes near Westminster.

What are the rules?

In last month’s budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20%, when they previously paid none.

There is a higher threshold of £3 million for couples passing on their farms.

The reforms will apply from April 6, 2026, with the government saying most estates will not be affected by the changes.

The Institute for Fiscal Studies (IFS) said “significantly fewer” than the 500 farms a year estimated by the government will be impacted by the changes.

But farming groups continue to dispute the government’s figures, with the National Farmers’ Union (NFU) saying around 75% of commercial family arms will be above the £1 million threshold.

Opponents say it will force cash-poor family-owned enterprises to sell up as they struggle to afford tax bills when land is passed on.