New inheritance tax changes in the UK have prompted farmers to think more about succession and planning ahead, according to senior lecturer at Harper Adams, Fiona Williams.

Speaking to the Irish Farmers Journal, Williams said the move was a surprising positive from the recent changes to inheritance tax rules.

When the initial announcement was made there was significant pushback from the agricultural sector, she said. As the new rules only took effect in April 2026, their full impact is yet to be seen. There is now a £2.5m cap on agricultural relief and business relief from the tax.

However, Williams said there are two sides to the issue. While the changes are prompting more farmers to consider succession, farmers are also being encouraged to invest in resilience and infrastructure.

However, this investment can increase the value of a farm, potentially pushing it over the tax threshold and resulting in inheritance being taxed at a higher rate, she said.

Williams, from Shropshire in England, is senior lecturer in sustainable rural land use and management at Harper Adams. She will speak on the panel on generational renewal, land access and sector resilience under the new CAP at the Agricultural Science Association conference on 3 September.

She said there are clear challenges in encouraging young people into farming across the UK.

The UK sector is facing similar pressures to Ireland and many other countries, including rising input costs and global uncertainty. However, it also faces unique challenges including the aftermath of Brexit, environmental land management schemes and the new inheritance tax rules.

Williams said some young people from farming families may choose a different profession while continuing to help on the farm, before returning to farm full-time later in life.

Meanwhile, others who want to farm face difficulties getting into the sector because they do not have access to land or the capital required to invest.

Matchmaking

In Wales and Scotland, advisory services support share farming by matching farmers looking to pursue the model with people seeking to work on or take over a farm. They also provide business and legal support through the process. There is no formal support for share farming in England, although it does occur occasionally.

“I think this is an area that there could be a lot more done in that respect because access to land and capital is still a big problem,” Williams said.

She also highlighted programmes such as the future farmer programme at Harper Adams, which support the upskilling of young farmers.

“I always find that’s interesting because retailers and supply chain actors that are quite often sponsoring those sort of things, so they must sort of feel that there’s a bit of an issue coming at them down the line.”

Future

Looking ahead, Williams said she remains positive about the future of UK agriculture, but there are significant challenges.

“I would love to have the answer, but I think it’s a case of just having a bit more certainty.” She is concerned about the knock-on effects for rural communities, particularly in more vulnerable areas.

Williams said there needs to be a better understanding of the breadth of the sector and the wider implications of policy decisions. While there is a roadmap for the sector, she said more action is needed on how to put it into practice.

“I’d like to see some more stability that enables farmers to make informed decisions going forward.”