Tag Archives: inheritance tax

No 10 Tells Protesting Farmers Controversial Inheritance Tax Policy Will Not Be Changed

Posted on by
Reply

The government will not U-turn on controversial changes to inheritance tax rules for farmers, No.10 has confirmed.

Keir Starmer’s official spokesman ruled out any climbdown as thousands of farmers, many of them driving tractors, once again descended on Westminster to protest against the policy.

Some of the placards on display read “No farmers, no food” and “Starmer Farmer Harmer”.

Rachel Reeves announced in the Budget that farms worth more than £1 million will become liable for the charge, albeit at the reduced rate of 20%.

Farmers’ leaders have warned that the move – which ministers say is necessary to help fill a £22 billion financial black hole left by the Tories – will put many farms out of business.

But asked if there could be a re-think on the inheritance tax changes, the PM’s spokesman said: “No. We have been clear that we understand the strength of feeling about the changes, but we are clear that this will only affect a small number of estates.

“Three-quarters of estates will be unaffected by these changes. But the government’s commitment to farmers is steadfast.”

He said the Budget had also seen the government pledge £5 billion-worth of support for farmers “which is already starting to land in farmers’ pockets”.

The spokesman added: “We recognise the strength of feeling, but we are committed to supporting our farmers, delivering rural economic growth and boosting Britain’s food security.”

Tom Bradshaw, the head of the National Farmers Union, had earlier told MPs that he feared some elderly farmers could commit suicide as a result of the policy.

If a farm is passed on to another family member, it is not subject to inheritance tax if the original owner lives for another seven years.

But giving evidence to the rural affairs committee, Bradshaw broke down in tears as he said: “Those people who are either in ill health or don’t believe they are going to be able to live for seven years may well decide that they shouldn’t be here on April 26.

“No policy should ever be published that has that unintended side-effect.”

Share Button

Rachel Reeves Tells Farmers There Will Be No U-Turn On Inheritance Tax Changes

Posted on by
Reply

Rachel Reeves has warned farmers preparing to take part in a mass anti-government protest that there will be no U-turn on controversial changes to inheritance tax rules.

The chancellor announced in last month’s Budget that farms worth more than £1 million which are handed down to a family member after the owner dies will be subject to 20% inheritance tax rather than zero, as is the case at present.

Farmers say that will put many of them out of business, and will make their feelings known at a lobby of MPs in Westminster on Tuesday, which has been organised by the National Farmers’ Union.

Thousands more are expected to join a separate rally in Whitehall.

Celebrities including TV presenter and farmer Jeremy Clarkson – who told The Times in 2021 that avoiding inheritance tax was “critical” in his decision to buy land – are expected to join the rally.

But in a joint-statement with rural affairs secretary Steve Reed ahead of the demos, Reeves said: “With public services crumbling and a £22 billion fiscal hole that this government inherited, we have taken difficult decisions.

“The reforms to agricultural property relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on.”

The pair said farmers were “the backbone of Britain”, and said the government is investing £5 billion into farming over the next two years.

But NFU president Tom Bradshaw said: “There’s a complete disillusionment and distrust, and feeling of betrayal, that [the government] doesn’t understand food production or even want to understand food production.

“Farmers are cross, they’re worried, they feel they’ve nothing to lose, I don’t know where this ends. I don’t believe the government have any choice but to rethink this policy.”

Share Button