Labour’s controversial modifications to inheritance tax may influence greater than 100,000 farms, Tories say
More than 100,000 farms could be hit by Labour’s changes to inheritance tax, the Tories claimed on Sunday.
Owners of an average-sized farm would effectively have to work for two years for free to meet the bill of £140,000, they say.
According to official government estimates, almost half of farms in England (49 per cent) are worth over £1.5 million.
Their analysis found that 102,041 of the 209,000 farm holdings in England could be subject to changes to inheritance tax.
An average farm is worth £2.2million, according to the Department for Environment, Food and Rural Affairs (Defra) and so would face a typical inheritance tax bill of £140,000.
Over 100,000 farms could be hit by Labour’s changes to inheritance tax, Conservatives have claimed
Rachel Reeves announced in her Budget that farms worth over £1million would be liable for inheritance tax at 20 per cent
Chancellor Rachel Reeves announced changes to inheritance tax at the Budget that will mean farms worth more than £1million will be liable for the charge of 20 per cent.
She has argued that it will only affect a handful of farms worth more than £3million once other allowances have been used, but these figures have been widely challenged.
The National Farmers’ Union (NFU) said the Government’s own figures suggest two-thirds of businesses could be hit.
Farmers have reacted in fury to the plans, threatening ‘militant’ action and warning that they could be forced out of business.
They also raised fears it could further fuel a mental health crisis in the community a day after it emerged that farmer John Charlesworth took his own life in fear of the inheritance tax raid.
There are 209,000 farm holdings in the UK over 17 million hectares of land, which is 70 per cent of the UK land total and the average UK farm size is 82 hectares.
The analysis found that up to 102,410 farms in England could now be subject to inheritance tax within a generation.
It came amid warnings that farmers could blockade ports or cause food shortages by refusing to supply their produce over the increases in tax.
They are considering tractor ‘go-slows’ and a strike on spreading sewage sludge on their land if the Government does not reconsider, Sky reported.
Clive Bailye, the founder of The Farming Forum, said these measures were being considered by some ‘hardcore groups’.
The arable farmer from Staffordshire, said he does not support such action himself and is ‘trying to calm the situation’ ahead of a rally in London later this month.
Farmers protesting against the government’s proposals outside the Northern Farming Conference in Hexham, Northumberland on November 6
The mass lobby, organised by the National Farmers’ Union (NFU), will consist of hundreds of farmers descending on Westminster on November 19.
Plans for a major rally involving tractors driving around Parliament Square opposite the Houses of Parliament were abandoned due to legal issues.
A Labour spokesman said: ‘This is scaremongering nonsense from the Conservatives who left farmers’ confidence at record lows when they left office.
‘Less than 500 claims each year will be impacted and farm-owning couples can pass on up to £3m without paying any inheritance tax.
‘Our new Labour Government recognises that food security is national security. That is why we are investing £5 billion into farming over the next two years.’
