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Íæż½ã½ã in the UK could have an unlikely ally when it comes to fighting the family farm tax.

Labour's Autumn Budget sent seismic shockwaves across the sector, with many angered and saddened that decades, and even centuries, of farming history could disappear in one stroke of the pen with a proposed 20% taxation on inherited agricultural assets over £1 million from April 2026. 

Family farm tax

The proposed taxation has had various names in the agricultural community; including the family farm tax, Inheritance Tax and the death tax.

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Farmer-led protests have taken place across the UK since the Budget was announced in October.

NFU president Tom Bradshaw has called on Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves to U-turn on the proposals to safeguard the country's food security and to ensure small family farm businesses are not burdened by a huge tax bill when the owner dies. 

Trade unions, supermarkets, banks and many more have backed farmers in overturning the proposed taxation, but the Treasury's door has remained firmly 'shut', and plans to go ahead with a reform of Agricultural Property Relief and Business Property Relief appear to be going ahead to the detriment of farming and rural communities.

And it is not just in the UK where farmers are fighting to repeal taxation on death.

On February 18, US Senate Majority Leader John Thune introduced legislation, the Death Tax Repeal Act, to repeal the Federal Estate Tax, a tax on the transfer of property when someone dies. 

United States

Could the 'Special Relationship' signify a unity between US and UK farmers who are fighting very similar attacks on their livelihoods through taxation?

The phrase is often used to describe the ties shared between the UK and US politically, socially, diplomatically, culturally, economically and historically.

Former Prime Minister Winston Churchill is believed to have coined the term in 1946 while delivering a speech in Fulton, Missouri.

He discussed the state of the world after the Second World War and the threat of Communism and the Soviet Union, but also addressed the unique relationship which exists between the US and the UK.

"Neither the sure prevention of war, nor the continuous rise of world organisation will be gained without what I have called the fraternal association of the English-speaking peoples," Mr Churchill added.

"This means a special relationship between the British Commonwealth and Empire and the United States.

"Thus, whatever happens, and thus only, shall we be secure ourselves and able to work together for the high and simple causes that are dear to us and bode no ill to any.

"Eventually there may come - I feel eventually there will come - the principle of common citizenship, but that we may be content to leave to destiny, whose outstretched arm many of us can already clearly see."

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Taxation on death

Politicians have argued that the taxation on death has had major impacts on farming families across the US, with many facing problems passing down 'generationally-owned' farm businesses to their heirs. 

Researchers from the University of Wisconsin-Madison said the tax was first introduced in 1916 as part of a unified system of transfer taxes.

In 2017, President Donald Trump doubled the individual estate and gift tax exclusion to $10m at the time, with Republican Senators arguing the increase helped to shield a large proportion of family farms from the death tax.

However, US Senator Cindy Hyde-Smith, who represents the southern state of Mississippi, said the increased exclusion rate expires at the end of this year, which increases uncertainty and planning costs for family-owned businesses, farms, and ranches.  

She is also one of many politicians supporting the legislation.

Death tax

Ms Hyde-Smith, who is also from a fifth-generation beef cattle farming family, said she wants to protect US farmers, ranchers, and small businesses by permanently repealing the 'death tax'.

"The debate on extending the Trump tax cuts gives us a valuable opportunity to finally do away with the death tax, which disproportionately burdens so many farming, ranching, and small business families," Ms Hyde-Smith said. 

"Rather than forcing these families to fork over a significant portion of their life's work to the Internal Revenue Service, we should permanently repeal the death tax so future generations can keep these family operations solvent and prospering." 

National Cattlemen's Beef Association president Buck Wehrbein said it was wrong to view the death tax as only impacting 'wealthy landowners', and added it was a 'boot on the neck of family businesses'.

Mr Thune said the death tax was putting a strain on farming families.

"Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota," 

"Losing even one of them to the death tax is one too many. 

Family farms

"It is time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability."

Idaho Congressman Mike Simpson said repealing the Bill would provide relief to family-owned businesses, farms, and ranches from being hit by the 'hefty' tax that occurs on the transfer of property or other assets from a deceased family member. 

"The punishing and burdensome death tax has crushed Idaho family farms, ranches, and small businesses for too long," Mr Simpson said.

"Repealing the death tax will assist farmers, ranchers, small business owners, and grandparents who have worked their whole lives to pass something on from generation to generation.

"I am proud to cosponsor this critical bill to support Idaho's multi-generational farms and small businesses, grow the economy, and protect Idahoans from devastating tax hikes."

Randall Feenstra, House of Representatives for Iowa, said the tax is 'unjust' to farming families. 

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"The death tax is an egregious double tax that unfairly targets American family farms and small businesses and directly threatens long-held farming traditions in rural Iowa and across the country," he added.

"It is ridiculous that the federal Government sends grieving families a massive tax bill when a loved one passes away.

Next generation

"I introduced the Death Tax Repeal Act to put an end to this double taxation, help our farmers and small business owners pass their businesses onto the next generation, and ensure that we can keep our family traditions alive across America.

"By permanently repealing the death tax, my bill will offer financial relief when it is most needed and ensure that our families, farmers, and small businesses can keep more of their hard-earned money — just as it should be."

Mike Bost, US representative for Illinois, said it was the 'right thing to do' for the tax to be repealed for the sake of farming families.

"Losing a parent can be tough enough," Mr Bost added.

"Families, small business owners, and local farmers should not be hit with a massive tax bill when a loved one passes away.

"That is why I cosponsored the Death Tax Repeal Act to stop the Government from imposing this unfair tax on income earned by a loved one who wanted to pass it down to surviving family members.

"It is the right thing to do."

The United States Department of Agriculture has argued that farmers are rarely affected by the tax due to 'high thresholds', which currently stand at over $13.9m.

But farm businesses above the threshold could face a highest marginal estate and gift tax rate of up to 40%.

READ NOW: Save Britain's Family Farms: Ben Aveling - "This is not about you or me being a farmer, it is about people of Britain who need to eat"