Hundreds of farmers have staged a rally in opposition to the federal government’s proposed inheritance tax reforms, branding them a “betrayal” that threatens the way forward for family-owned farms.
Tom Bradshaw, president of the Nationwide Farmers’ Union (NFU), obtained a standing ovation at Church Home as he condemned the coverage as “the straw which broke the camel’s back”.
“To launch a policy this destructive without talking to anyone in farming beggars belief,” Bradshaw informed the 600 NFU members in attendance. Highlighting the extreme inflationary pressures and difficult climate situations over the previous 18 months, he added: “You in this room have nothing left to give. It’s wrong on every level and, just as bad, it won’t achieve what the Treasury wants to achieve.”
The federal government goals to boost £520 million a yr by 2029 via the inheritance tax adjustments, concentrating on rich people who put money into giant estates to cut back their tax payments. Nonetheless, Bradshaw warned that the reforms would incentivise folks to withdraw cash from pensions to put money into agricultural land price £1 million, doubtlessly undermining the coverage’s intent.
Emotionally moved throughout his speech, Bradshaw spoke of the “unacceptable human impact” on aged farmers who threat shedding their life’s work because of the price range. “We know that any tax revenue raised will be taken from our children and raised from those that die in tragic circumstances or within the next seven years,” he stated.
Farmers argue that the seven-year gifting rule—which exempts presents from inheritance tax if the giver lives for seven years after the switch—wouldn’t successfully apply to them. It’s because many farmers want to attract a pension from the farm after passing it to the following era, which counts as a reserved profit. Moreover, in the event that they proceed dwelling on the farm post-transfer, they would wish to pay lease to keep away from inheritance tax fees.
A standoff is unfolding in Westminster, with farming leaders insisting that the Treasury is “working from the wrong figures”. The federal government maintains that 73% of farms won’t be affected by the adjustments, urging farmers to “look at the facts” in historic claims knowledge. The NFU disputes this, stating that Treasury officers primarily based their figures solely on Agricultural Property Reduction (APR) claims, neglecting the Enterprise Property Reduction (BPR) claims which might be essential for equipment and livestock.
“Most inheritance cases combine Agricultural Property Relief and Business Property Relief,” the NFU knowledgeable its members. “HMT has completely misunderstood its own data and ignored claims made by farmers under the BPR regime.”
On the rally, every of the 600 seats bore a message for the federal government: “Government needs to halt this policy. The policy is broken and based on the wrong evidence.” The environment was charged with palpable anger, culminating in a pointed reminder: “When you make a promise to farmers, you keep it.”
The farming neighborhood feels significantly aggrieved as, whereas in opposition, Labour had assured them there have been no plans to change inheritance tax. Sir Keir Starmer, talking on the NFU convention in 2023, promised to supply “certainty” to farmers.
