Farming organisations have called on the UK government to consider alternatives to the proposed inheritance tax reform, ahead of the Budget in the coming weeks.
The National Farmers’ Union (NFU) and the National Sheep Association (NSA) have separately outlined their budget submission proposals, with a better targeted approach to inheritance tax reform being a top priority for both.
Both organisations have highlighted a revised framework on agricultural property relief, which sets out to protect family farms and at the same time raise more taxation funds for the government.
NFU
According to the NFU, farmers’ confidence in the UK government has hit “rock-botttom” after the changes to the inheritance tax, which were announced at last year’s Budget.
The farming union is now calling on the government to renew its relationship with farmers and growers by introducing measures in this year’s Budget that “will ignite investment and growth in the industry.”
NFU President Tom Bradshaw said: “Farmers and growers either choosing not to or being unable to invest in their businesses should worry us all.
“These are the businesses that produce the nation’s food, underpin the UK’s largest manufacturing sector – which is worth £153 billion to the economy and supports 4.2 million jobs – and manage and protect our iconic countryside.
“This is the same farmed countryside that the prime minister and his cabinet stood in front of on stage at the Labour Party conference with the slogan ‘Renew Britain’ emblazoned on top of sunny rural landscapes.
The NFU president noted that the reality is “far from sunny” in farming communities, “with confidence levels at an all-time low”.
“This matters because without investment in farming today, we risk food supplies for tomorrow.
“That’s why ahead of the Budget, I have urged the Chancellor again to take the handbrake off of Britain’s farmers, look at the alternatives on offer to the family farm tax and work with us to unlock the investment British food production so desperately needs,” Bradshaw added.
The NFU stated they have written to the Chancellor to outline its budget submission proposals, including the request of “a better targeted approach to inheritance tax reform, which raises more revenue for the Exchequer, and rules out any changes to inheritance tax relief for lifetime gifts.”
NSA
NSA chief executive Phil Stocker commented: “It is clear the inheritance tax proposals will have a serious impact on many working family farms where profitability bears little relationship to asset value and proposed taxation levels. Â
“The recent Centre for Analysis of Taxation (CenTax) report says that changes to proposals for inheritance tax and business property relief could be better targeted to protect working farms and at the same time raise more funds for HMRC and this advice is something that should be heeded.
“With the autumn statement around the corner, it is surely time to relook at the current proposals and construct something that is fit for purpose with clear financial and structural outcomes.”
Chancellor Rachel Reeves is set to announce this year’s Budget on November 26.
