Monday, November 4, 2024

UK government’s tax plans will destroy family farming; farmers to gather in London to protest


UK government’s tax plans will destroy family farming; farmers to gather in London to protest



A rally is being held in London to protest against the UK government’s agricultural policies.  Organised by the National Farmers’ Union (“NFU”), which represents more than 46,000 farming and growing businesses, the rally is taking place on 19 November.

In a vlog published on Friday, NFU President Tom Bradshaw outlined the plans and urged NFU members to send in their videos to demonstrate the impact that the Budget announcement will have on their business.

Bradshaw began, “Members, farmers, I know that today many of you are feeling angry and betrayed. And we absolutely share that frustration. We understand what the impact of the removal of APR [agricultural property relief], or this family farm tax, which has been implemented could have on you, your farm and your family. We want you, our members, to be involved in the next steps.”

Farmers have also been posting videos on social media, see HERE and HERE.

Agricultural Property Relief (“APR”) is a relief from inheritance tax on the transfer of agricultural property.  In her budget,  Rachel Reeves announced significant changes to the UK Inheritance Tax regime. Business Property Relief (“BPR”) and APR claims will be capped at £1m per taxpayer with inheritance tax of 20% applying on the full value of farms and rural estates above £1m.  The tax is effective from April 2026.

The cuts to APR potentially jeopardise thousands of family farms by increasing the Inheritance Tax burden. APR provides critical relief on the transfer of agricultural property, allowing farming families to pass their established food-producing business down to future generations.

This change could force family farms to sell off land to pay inheritance tax, potentially breaking up family businesses and destabilising food security. Why should non-farmers care? “Preventing farms from being sold or broken up is a public interest issue, too. Food security in the UK is declining in several sectors, making the country more dependent on imports,” The Guardian reported.

The Country Land and Business Association will be making urgent representations to the Treasury on how this will affect 70,000 farms.

On Friday, NFU tweeted, “The family farm tax must be overturned.  Add your name and show your support for stopping the family farm tax” and attached a link to a petition.  So far, the petition has garnered just under 71,000 signatures.  You can sign the petition ‘Back British Farming: Overturn the family farm tax’ HERE.

While taxing independently run farms, the Government has exempted land that is under its control from the new tax. The Government says: “land managed under an environmental agreement with, or on behalf of, the UK government, devolved governments, public bodies, local authorities, or relevant approved responsible bodies”  will not be subject to the new cap.  In other words,  if a farm comes under the control of the Government’s “environmental” diktats, farmers will be spared the extra, and in most cases unaffordable, cost of passing their farm onto their children.

Somerset farmer Richard Payne told the BBC, “Right across the land there will be a sea change for the worse. Everyone says they don’t like mega-farms and they don’t want factory farming, but I can see that will be one answer out of all of this.”

Farmers will be taking to the streets in just over two weeks to make their voices heard – and the general public should get behind them.


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