UK farmers are facing a disaster and could end up paying thousands of pounds more in car tax after the Government quietly closed a lifeline loophole.
In a second tax raid vehicles such as the Ford Ranger and Nissan Navara will be classed as cars rather than vans from next April meaning annual bills will skyrocket.
Two-door, two-seat single-cab models and extended-cab models with two doors and four seats are thought to be unaffected by the move.
Rachel Reeves’ policy change was hidden on page 133 of last week’s Budget document.
Taxpayers are bracing themselves for a significant price hike causing their annual bill to rise from £792 a year to £4,400.
The announcement from the Government comes after the previous Conservative Government announced a similar rule-change in February 2024, but then reversed after a matter of days due to facing significant backlash.
Yet just eight months down the line, the controversial measure has been reinstated.
The Chancellor has been heavily criticised for the Budget’s possible effect on farmers.
Just last week she provoked widespread fury by announcing that agricultural property relief was being abolished, claiming it was increasingly being used by the very wealthy to protect their assets from tax.
From April 2026 farms and other business property will fall within inheritance tax.
Inheritors will have to pay 20% of the value of the agricultural and business property above £1million. Having tax exemptions currently costs “about £1bn a year for taxpayers”, according to Chief Secretary to the Treasury, Darren Jones.
Critics said it could lead to the “death of the family farm” and the National Farmers Union said it could damage food production.
Jeremy Clarkson warned the changes are “killing farming”.
Previously those owning farmland benefitted from Agricultural Property Relief, meaning they were exempt from inheritance tax
Ms Reeves defended her changes on Sunday, saying: “Last year only a very small number of farms would have been paying any additional inheritance tax.”
