A farmer dies in April 2026.
His son inherits the farm. The farm has been in the family since 1847.
The farm consists of: 300 acres of grazing pasture, a farmhouse built in 1892, a barn, a milking parlour, two tractors of varying ages, a Land Rover that runs about 70% of the time, and a herd of 180 Hereford-cross cattle.
On paper, the farm is worth approximately ยฃ3.2 million. This is because land near him has been bought recently by a London hedge fund looking for carbon credits, which has dragged the comparable value of every field within forty miles upward to a number nobody local can justify.
In cash, the farm produces a profit of about ยฃ28,000 a year in a good year. In a bad year it loses money. The son also works as a fencing contractor three days a week to keep the operation viable.
The inheritance tax bill on a ยฃ3.2 million estate, even at the reduced 20% rate, comes to approximately ยฃ140,000 after the increased threshold is applied. The son does not have ยฃ140,000. The son has never had ยฃ140,000. The son has ยฃ4,200 in his current account and an overdraft.
The son sells 60 acres to a developer to pay the tax. The developer puts solar panels on the 60 acres. The remaining herd cannot be sustained on the reduced land. The herd is sold. The barn becomes a holiday let.
A different family eats Brazilian beef this Christmas without knowing why the price went up.
The Treasury collects ยฃ140,000.
The land never produces British food again.