Hundreds of farming businesses 'face deep uncertainty' over inheritance tax

So says Victoria Atkins, the Conservative MP for the constituency and the Shadow Environment Secretary, who has reiterated her strong opposition to the changes, which come into force this month.

The number of farming businesses that could be affected across Louth and Horncastle is one of the largest in the entire country.

Ms Atkins has warned of “serious consequences for family farms and rural businesses across the area”, which are “now facing deep uncertainty”.

And she fears that “many will have to sell or break up long-standing family farms in order to meet inheritance tax liabilities”.

What’s more, the changes to Agricultural Property Relief and Business Property Relief come at a time when farmers are facing increasing cists in fuel and fertiliser, driven by the conflict in the Middle East.

Ms Atkins said: “This month, farming families the length and breadth of Britain will be living in fear of breaking up their farms when relatives pass away, all in order to pay crippling sums to the Treasury.

“This could have been avoided, but it is being imposed by a government with no understanding of, or care for, rural life. It has overseen the highest number of farm closures on record as a result of its taxes and policies.

“The Conservatives are on the side of rural communities, and we will axe Labour’s family farm and business taxes when we are back in government. The farmers who work long hours to produce food for the nation deserve better.”

The Labour government says it is making the changes to close loopholes that allowed wealthy investors to use farmland to shelter significant assets from tax – and also to raise extra revenue to pay for public services.

Meanwhile, rural property experts at Savills in Lincolnshire are urging farming families to ensure their succession plans are clear and up to date.

They are also offering advice and stress that the financial implications of the reforms should not be under-estimated.

A spokesperson said: “Structured planning and early action are essential if families are to preserve the long-term viability of their business.”