Tweenhills owner David Redvers has applauded Tattersalls chairman Edmond Mahony for speaking out against the Government's budget announcement which caps inheritance tax on farms at £1 million.
Although Mahony had just overseen another memorable sale at Park Paddocks, which saw a novel record broken for the highest priced horse sold at the Tattersalls Autumn Horses-In-Training Sale at 1.3 milliongns, he used this platform to highlighting the changes made in the budget that he believes will have a “negative impact on the entire racing and breeding sector” in the UK.
While agricultural property was passed on to heirs tax-free for decades, from April 2026 agricultural businesses and other commercial properties will also be subject to inheritance tax. Heirs must pay 20% of the value of the agricultural and business property over £1m.
Redvers says the announcement is “an attack” on Britain's rural economy and the changes made to inheritance tax are just the biggest blow to Thoroughbred breeders in the country. Mahony agrees.
“I think that sums it up,” Mahony said. “More closely, the raise in social security and the change in the minimum wage are likely to have a particular impact on stud farms and trainers. The changes to capital gains tax and commercial property exemptions are more of a long-term issue. As the changes to commercial property are not due to take place until April 2026, I assume there will be a consultation period on this and I hope common sense prevails. But you see, it appears to be a Budget that has gone completely in the wrong direction when it comes to business, the cultivation of individual ambition and economic growth – in fact, everything they were talking about before the election. That's where I came from [in highlighting the budget post-sale].”
For years, the APR tax break has allowed petite family farms – including land used for crops or livestock, as well as outbuildings, cabins and homes – to be passed down across generations. Redvers says the changes made in the budget have the potential to render most of his life's work pointless as there would be no choice but to put Tweenhill up for sale, as many of his neighboring farmers have been forced to do in recent years.
He explained: “Nothing has upset me and my apple cart more than this budget announcement. My entire life's work revolves around running a family farm that has been in the family for generations. Alongside Hartpury College, which apparently has over 4,000 students, we are the largest employer in our region. All the smaller dairy farms had to sell because they weren’t profitable on 150 acres.”
Redvers added: “I am very aware that I am only the manager of the place. That was the driving force in business for me. I have three children, some of whom want to continue the business and maintain the connection to the land that we have had for years. This announcement will undoubtedly change the appearance of the countryside and is an attack on the rural community. What makes it particularly galling is the fact that the Prime Minister publicly stated that this would not happen before the election. He will deeply regret causing the feeling of anger that is building in the country.”
Redvers and Mahony admit the changes made in the budget are the latest blow to the UK's already struggling cohort of growers. Mahony in particular stressed that while the Book 1 and Book 2 sessions of the October yearling sale made headlines, he is keenly aware of the smaller breeders who are on the brink.
Mahony explained: “There are a lot of breeders who are hanging on by their fingernails. It's great when you see Books 1 and 2 and all the other sales grab all the headlines, but it's the guys in Book 3, Somerville – it's those kinds of sales that are representative of the smaller breeders that do that form the backbone of the industry. They’re really struggling and that’s another nail in the coffin, if you will.”
In addition to the changes to inheritance tax, employers' national insurance contribution thresholds will be reduced from £9,100 to £5,000 from April 2025. Employers' NI rate will raise from 13.8% to 15% in April 2025, while the employer's contribution (the amount an employer can deduct from their NI contribution to HMRC) will rise from £5,000 to £10,000. Meanwhile, the national living wage rose 6.7% in April 2025, on top of a 9.8% raise in 2024.
Redvers concluded: “You only have to look at the number of British breeders, which are falling sharply, to see that the future of the industry is in a perilous situation.” I can imagine many British breeders in this industry who are on the verge of bankruptcy. This is happening against the backdrop of a failing economy where people have less cash left over than before. I have been in discussions with two top British breeders in the last few days and they have explained to me that they are at a loss of 20 mares and are barely breaking even. That doesn't even scratch the surface of the situation. This is a catastrophic situation here.”
