What You Need To Know On Changes To The Inheritance Tax Following The Budget And How This Will Impact Scottish Farmers
Following a tumultuous few weeks over the family farm tax which included farmers protesting in London, a suspended MP and tractors seized. The Inheritance tax has become an ongoing issue and concern for farmers over the last year following the Labour governments announcement in their budget last year to begin inheritance tax on family farms. Here is what you need to know on developments in the inheritance tax since the budget announcement this year.
Markus Campbell-Savours discussing the inheritance tax (credit to UK Parliament Tv)
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1. Farmers flocked to Whitehall to spread their concerns on the tax on budget day. However police in London cancelled the planned protest the night before farmers were due to roll into London. However this did not deter farmers bringing a fleet of tractors to the streets of London.
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2. The protest included farmers being arrested and two tractors seized by police. So far only one tractor has been released through funds raised in a go fund me for Devon arable farmer Steve Webber. The other driver is yet to be named. However Steve Webber has offered to pay the costs to recover the tractor seized in Trafalgar Square from the remaining money in the go fund me. After this has been paid the remaining funds will be split between the Farming Community Network and the Royal Agricultural Benevolent Institution.
3. But, how will this be affecting Scottish farmers Argyll and Islands Regional Chair Sybil MacPherson discussed how this will impact Scottish farmers “potentially absolutely well horrendous really. As many farmers are possibly asset rich in that they’ve got land and livestock etc but most of them will be cash poor so to suddenly have to find funds to pay inheritance tax will inevitably in a lot of cases mean having to dispose of land and or stock in order to meet that cost.”
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Argyll and Islands Regional Chair Sybil MacPherson discussing the impact the inheritance tax will have on Scottish farmers. Sybil MacPherson (Image credit The Scottish Farmer)
4. The budget did bring some good news for farmers a small concession has been made a 100% agricultural property relief threshold will allow farmers to transfer farms between spouses. However farmers argue this is not enough and the government are pushing them to extinction.
5. A vote was held by MPs on the inheritance tax on the 2nd of December which was boycotted by dozens of Labour MPs. Although the vote was in favour of the tax 326 votes for ayes and 182 votes for noes. Nearly a quarter of the Conservatives failed to show up for the vote and farmers. This included Conservative leader Kemi Badenoch and Shadow Minister for Environment, Food and Rural Affairs Robbie Moore. This has left farmers to question who is voicing their concerns on this brutal tax.
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Kemi Badenoch and Shadow Minister for Environment, Food and Rural Affairs Robbie Moore did not vote (credit to the UK government)
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6. Farmers have argued across social media the detrimental impact this tax would have on farming businesses. Farmers highlighted they are asset rich and are already struggling to make profits, pay bills and their own wages. Family farmers argue they will not be able to survive if this tax is put in place and feel unsupported by their government. The tax will not only affect landowners it is likely tenant farmers will suffer rent increase from their landlords to recoup the inheritance tax they will have to pay.
7. Labour MP Markus Campbell-Savours was suspended by his party for voting against the family farm tax. Earlier in the week in the House of Commons he pledged to represent his community of Penrith and Solway “I intend to walk around my community knowing I did all I could for them but I cannot do that knowing that my constituency 1,665 farms, the farm workers and the supply chains that depend on them were let down knowing that I broke my word…I gave my word and I intend to keep it.” He has received praise from across the farming community for standing up for his community and farmers across the UK.
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Are you interested in agricultural
politics take a look at our article
on the Future Farming Investment
Scheme.
Crofters, Tenants and Island Farmers
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