The son of a farmer who died by suicide on the eve of last year's Budget has described a major government reversal on inheritance tax reforms as "the best Christmas present for a lot of farmers".
A Tragic Loss Amid Tax Anxiety
John Philip Charlesworth, 78, was found dead in a barn on his farm in Silkstone, Barnsley, on 29 October last year. His son, Jonathan Charlesworth, made the discovery just one day before Chancellor Rachel Reeves delivered her first Budget.
An inquest at Sheffield Coroner's Court heard that in the months leading up to that day, the farmer had become increasingly anxious about proposed changes to inheritance tax and the potential implications for his family's livelihood. Jonathan told the hearing that his father's predominant concern in his final months was the threat of the tax overhaul, and he believed his father acted in a misguided attempt to "save the farm for future generations" and "beat" the Government's proposals.
Government Announces Major Threshold Increase
On Tuesday, the Department for Environment, Food and Rural Affairs (Defra) announced a significant climbdown on the initial plans. Ministers stated they had "listened to concerns" from the farming community and businesses.
The key change sees the inheritance tax relief threshold for farmers raised from £1 million to £2.5 million. This means that from April, spouses or civil partners will be able to pass on up to £5 million in qualifying agricultural or business assets between them before inheritance tax becomes due, on top of existing allowances.
For assets above that new allowance, farmers will now receive 50% relief and pay a reduced effective rate of up to 20%, rather than the standard 40%. The Government estimates this will reduce the number of estates facing higher bills from around 2,000 under the original plan to approximately 1,100.
A Bittersweet Victory for Farming Families
Reacting to the news, Jonathan Charlesworth told the Press Association that "pressure from the industry has paid off". He acknowledged the reform as a step in the right direction that would allow more farm families to "sleep better this Christmas without the threat of inheritance tax looming over them".
However, he struck a poignant note, stating the U-turn "won't bring back the lives lost over the last year or so due to the anxiety caused". He expressed hope that the change would "prevent a flood of suicides" in the run-up to the policy's commencement in April.
"It should have been researched and put out to review before any announcement was made," he said, criticising the initial rollout. "But today we can celebrate a well-fought-for victory for our precious countryside and the custodians of it."
The original Treasury plans, which would have restricted full 100% relief to the first £1 million of property, triggered widespread protests, including tractor demonstrations outside Parliament and criticism from Labour MPs representing rural constituencies.
