Hundreds of farmers are protesting in London due to proposed changes to inheritance tax.

A rally organised by the National Farmers' Union has accused Labour of a "stab in the back" over changes to tax exemptions announced in the latest budget.

Here's what you need to know.

What is happening?

Farmers from all four nations of the UK have travelled to London to protest against the current government.

NFU president Tom Bradshaw told members: “We know that the public are overwhelmingly supporting farmers, the second most trusted profession.”

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What are the farmers protesting about?

The new Labour government has made changes to inheritance tax, removing a previous exemption for farmers.

Under agricultural property relief (APR), farmland could previously be passed down with no tax.

The rationale behind this is to ensure food security and that land is still being farmed, with many farmers not making much money.

However, from April 6, 2026 that exemption will only apply on land worth up to £1m.

After that farmers will pay a reduced rate of 20%, which can be paid interest free in instalments over 10 years.

Why have Labour done this?

The government believes the changes could raise up to £200m for services like the NHS, and that most farms would not be affected.

Environment secretary Steve Reed said on Tuesday: "Half of farmland sold last year went to non-farmers including wealthy individuals trying to avoid inheritance tax.

"It's right that tax changes will ensure everyone pays their fair share - and young farmers can realise their dream of buying their own farm."

Labour have previously said that only around 500 estates would be affected, but this is disputed.

What is the dispute?

The 500 claim is based on the number of farmers who claimed APR in the last year, but it does not include those who claimed business property relief (BPR).

That is a tax exemption used for things like expensive farm machinery, and under the new rules has been combined with APR.

The combined exemption will be that £1m figure, and because the number of farms claiming BPR has not been calculated, critics say the government has no way of knowing how many farms will be affected.

For example, a used sprayer on AutoTrader can go for close to £400,000 which would eat up a significant amount of that allowance.

The National Farmers Union has said that two-thirds of the UK's farms are worth over one million, with over 200,000 in the country.

Tom Bradshaw, the NFU president, said: “Far from protecting smaller family farms, which is what ministers say they’re doing, they’re actually protecting private houses in the country with a few acres let out for grazing while disproportionately hammering actual, food-producing farms, which are, on paper, much more valuable."

Labour says that farms worth up to £3m could be exempt, because married couples are also allowed to claim up to £1m tax free.

However, Jeremy Moody from the Central Association of Agricultural Valuers said this would only apply to jointly-owned farms where neither spouse had any personal assets.

What has the Prime Minister said?

Sir Keir Starmer insisted: "I do understand the concern.

“But for a typical case, which is parents with a farm they want to pass on to one of their children, by the time you’ve taken into account not only the exemption for the farm property itself, but also the exemption for spouse to spouse, then parent to child, it’s £3m before any inheritance tax will be payable.

“That’s why I am absolutely confident the vast majority of farms and farmers will not be affected by this. It’s important for us to keep communicating how that works. Over the £3m, it’s then 20% rather than the usual rate and it’s payable over 10 years.”

What have the protestors said?

Jeremy Clarkson speaks with the media in central London ahead of the farmers protest over the changes to inheritance tax (IHT) rulesJeremy Clarkson speaks with the media in central London ahead of the farmers protest over the changes to inheritance tax (IHT) rules (Image: Aaron Chown/PA Wire)

Those opposed to the plans say the changes to tax will make farming unaffordable, and when farmers die their children will be forced to sell the land.

Television host Jeremy Clarkson, who owns a farm, wrote in the Sunday Times: "Thousands and thousands of farms right across the British Isles are being run by people who learnt everything from their dad and will pass all they know on to their kids.

"But is that going to be possible any more? Because now, when Dad dies, there will be a tax bill. And the only possible way of paying it will be by selling up. Rachel Reeves, then, looks to have killed farming."

Critics have pointed out that when the presenter, who makes the hugely successful Clarkson's Farm on his property, bought the £4.25m estate he wrote: "Land is a better investment than any bank can offer. The Government doesn’t get any of my money when I die."

Daniel Spours, a tenant farmer from north Northumberland, travelled to Whitehall to protest against changes to inheritance tax and carbon rules which he said will affect the price of fertiliser.

Mr Spours told the PA news agency: “We are about £60,000 worse off next year from payments that have been slashed by the Government.

“Going forward, there is more taxes to come on fertiliser that’s going to affect us hugely as well, so it’s looking pretty grim.”

Could this affect the food supply?

That depends how far the farmers are willing to take their protests.

Around 60% of the food consumed in the UK is grown by domestic farms, with the rest imported.

The government says it has contingency plans in place for any shortages.

Policing minister Dame Diana Johnson told Sky News: "Issues around food security are obviously national security issues.

“There are plans in place, there are contingencies always in place to deal with that, but I’m confident that won’t happen.”