Farmers across the UK are voicing strong opposition against the government’s proposed inheritance tax reforms, labelling them a ‘betrayal’.
- The National Farmers’ Union (NFU) has criticised the government for a lack of consultation with the farming community regarding the policy changes.
- Tom Bradshaw, NFU president, addressed the detrimental impact on farmers, highlighting inflation and challenging weather as ongoing issues.
- The government plans to generate £520 million annually by 2029, targeting wealthy individuals, but farmers argue it will harm small family farms.
- The dispute centres on the government’s interpretation of Agricultural and Business Property Relief figures, which the NFU claims are incorrect.
The farming community in the UK has launched a significant protest against the government’s proposed changes to inheritance tax, which they argue will severely impact family-run farms. The policy aims to increase tax revenue by targeting wealthy individuals who use large estates to minimise their tax liabilities.
Tom Bradshaw, the president of the National Farmers’ Union (NFU), received a standing ovation for his speech at Church House, where he described the policy as ‘the straw which broke the camel’s back’. He criticised the government for not consulting with the farming community and stated, “To launch a policy this destructive without talking to anyone in farming beggars belief.”
Bradshaw highlighted the severe financial pressures that farmers are already facing, including inflationary pressures and adverse weather conditions over the past 18 months. He emphasised that farmers have nothing left to sacrifice and that the policy won’t achieve the Treasury’s intended goals. “You in this room have nothing left to give,” he remarked.
The government’s proposed changes are projected to raise £520 million a year by 2029, primarily by limiting tax reliefs for wealthy individuals. However, Bradshaw warned that this could have unintended consequences, such as encouraging people to withdraw funds from pensions to invest in agricultural land, potentially defeating the policy’s purpose.
One of the key issues for farmers is the seven-year gifting rule, which exempts gifts from inheritance tax if the giver lives for seven years after the transfer. Many farmers argue this rule is ineffective for them, as they often need to draw a pension from the farm after passing it on, which counts as a reserved benefit. If they continue living on the farm, they must pay rent to avoid tax charges.
The NFU disputes the government’s claim that 73% of farms will be unaffected by the changes, asserting that the Treasury based its figures only on Agricultural Property Relief (APR) and overlooked Business Property Relief (BPR), which also applies to machinery and livestock. “Most inheritance cases combine Agricultural Property Relief and Business Property Relief,” the NFU communicated to its members, highlighting a misunderstanding of data by the Treasury.
The atmosphere at the NFU rally was charged with emotion, as farmers and farming leaders reiterated their demand for the government to rethink its policy. Each seat at the rally bore a message to the government: “Government needs to halt this policy. The policy is broken and based on the wrong evidence.”
Despite assurances from political leaders like Sir Keir Starmer, who had promised stability for farmers, the sense of betrayal was palpable as the farming community sought relief from what they considered unfair taxation changes.
The farming community remains steadfast in its demand for a reversal of the government’s inheritance tax reforms, citing significant adverse effects on the sector.
