M&S has warned that upcoming changes to inheritance tax could discourage young people from entering the farming industry, at a time when UK agriculture is already under pressure.
From April 2026, inherited agricultural assets worth more than £1 million will be taxed at a rate of 20% — half the usual rate but a significant shift from existing rules.
Steve McLean, the high street giant’s head of agriculture and fisheries, told BBC Wales the changes would “definitely” be a “deterrent for young people coming into the industry”.
Speaking at the Royal Welsh Show in Llanelwedd, McLean said M&S was “very, very clear” that agriculture should be treated differently by government.
“The whole taxation system was devised to recognise that the margins of profitability in agriculture weren’t like other industries,” he said. “That’s why you had a difference in how the inheritance tax approach was set up.”
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McLean warned the policy, announced by Chancellor Rachel Reeves in November, would “impact confidence” across the sector.
“They definitely will be a deterrent for young people coming into the industry, and we want to see a vibrant, viable farming structure where young people can come in and make a good living and be proud of what they do,” he added.
“So being able to give greater surety, greater security is going to be key to viable farming structure going forward.”
A UK government spokesperson defended the move, saying: “Our commitment to farming and food security is steadfast, which is why we’ve allocated a record £11.8bn to sustainable farming and food production over this parliament and appointed former NFU president Baroness Minette Batters to recommend new reforms to boost farmers profits.”
They also insisted that “three quarters of estates will continue to pay no inheritance tax at all,” adding that “the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free.”
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