Written by Stella Meehan from Agriland
Orkney and Shetland MP, Alistair Carmichael, has highlighted concerns among farmers and crofters about the potential impact of changes to Business Property Relief and Agricultural Property Relief on inheritance tax, reported to be under consideration in the upcoming Budget.
Speaking in a parliament debate led by Harriet Cross, MP for Gordon and Buchan, Carmichael noted issues raised by the Tenant Farmers’ Association.
He said that while there “might be a case for reform”, any changes in relation to farming risked wider consequences across rural communities.
Speaking in the debate, Carmichael said: “We have had a lot of speculation in the media in recent weeks about the possibility of changes coming in the Budget very soon.
“There may be a case for reform, but this really is not the way to go about it. Farming is a capital-rich and revenue-poor industry.
“What affects farmers will affect vets, agricultural merchants, local shops and post offices in some of the most economically fragile communities to be found anywhere in the country,” he added.
The MP explained that farming underpins so many aspects of rural communities and the rural economy, whether environmentally, through the way in which land is managed, or financially.
The Tenant Farmers’ Association provided a briefing for the debate, which said that it is already seeing consequences among its members.
The briefing stated: “We are already seeing, first hand, concerns about how Inheritance Tax charges change the way that traditional estates have thought about the management of their agricultural land, and that is before there is any change to the Inheritance Tax regime.
“If APR [Agricultural Property Relief] was abolished, this will make things hugely much more difficult for farm tenants.”
According to the tenants’ association, a lot of the larger landowners’ estates have replaced the secure agricultural tenancies for which they had been known for generations with “a much less secure system of tenure”.
MP Carmichael continued: “As the TFA says, there might be a case for reform. It suggests ways to reward longer tenancies of 10+ years and more secure tenancies.
“I hope that when the chancellor delivers the Budget next week, if this issue is under the Treasury’s active consideration, we will see the government’s direction of travel and the overall picture that they want to achieve, rather than just one quick hit, because that could have serious consequences for family farms and rural communities across the country.”
The post Concern for farmers over possible inheritance tax changes appeared first on Agriland.co.uk.
Continue reading on the Agriland Website...
Speaking in a parliament debate led by Harriet Cross, MP for Gordon and Buchan, Carmichael noted issues raised by the Tenant Farmers’ Association.
He said that while there “might be a case for reform”, any changes in relation to farming risked wider consequences across rural communities.
Speaking in the debate, Carmichael said: “We have had a lot of speculation in the media in recent weeks about the possibility of changes coming in the Budget very soon.
“There may be a case for reform, but this really is not the way to go about it. Farming is a capital-rich and revenue-poor industry.
“What affects farmers will affect vets, agricultural merchants, local shops and post offices in some of the most economically fragile communities to be found anywhere in the country,” he added.
The MP explained that farming underpins so many aspects of rural communities and the rural economy, whether environmentally, through the way in which land is managed, or financially.
The Tenant Farmers’ Association provided a briefing for the debate, which said that it is already seeing consequences among its members.
The briefing stated: “We are already seeing, first hand, concerns about how Inheritance Tax charges change the way that traditional estates have thought about the management of their agricultural land, and that is before there is any change to the Inheritance Tax regime.
“If APR [Agricultural Property Relief] was abolished, this will make things hugely much more difficult for farm tenants.”
According to the tenants’ association, a lot of the larger landowners’ estates have replaced the secure agricultural tenancies for which they had been known for generations with “a much less secure system of tenure”.
MP Carmichael continued: “As the TFA says, there might be a case for reform. It suggests ways to reward longer tenancies of 10+ years and more secure tenancies.
“I hope that when the chancellor delivers the Budget next week, if this issue is under the Treasury’s active consideration, we will see the government’s direction of travel and the overall picture that they want to achieve, rather than just one quick hit, because that could have serious consequences for family farms and rural communities across the country.”
Related Stories:
-
UK farm support spending may come under pressure
-
Stormont agri chair: Parties united in call for funding for farming
-
MP Lockhart welcomes new farm safety action plan
The post Concern for farmers over possible inheritance tax changes appeared first on Agriland.co.uk.
Continue reading on the Agriland Website...
