Written by Francess McDonnell from Agriland
Uncertainty over tax is one of the most “pressing challenges” facing the rural sector and family farms according to the result of a poll carried out by the Country Land and Business Association (CLA).
More than 500 farmers and landowners took part in the poll against the backdrop of concerns that the Labour Government may change agricultural property relief (APR) and business property relief (BPR) in the budget next month.
According to the results of the poll:
According to the CLA says the findings of the poll demonstrate the “danger of removing or curtailing reliefs” at what they said is a crucial time for the UK’s farming industry.
Victoria Vyvyan, president of the CLA, said: “This government has promised economic growth but at the moment, in the rural sector, we’re not feeling the love.
“The government has said it won’t increase taxes on working people. Farmers are working hard around the clock feeding the nation and looking after the environment, and uncertainty over tax is one of the most pressing challenges facing the rural sector.”
Vyvyan has warned that removing or capping inheritance tax reliefs would have a major impact on the viability of a family farm and potentially “jeporadise” the future of rural businesses.
“At a time of profound change in the industry, we need stability for our businesses while we adjust to new agricultural policies,” she warned.
According to the CLA the APR exists “to ensure the continuance of farming after the death of the farmer”, while BPR “fulfils the same objective for other types of family businesses”.
The association said that while it is not possible to establish the exact impact on rural businesses of removing inheritance tax reliefs, it has estimated that if it led to a reduction of 5% in the number of businesses registered in rural areas, this would equate to over 27,500 businesses and potential unemployment of 190,000.
For an average family farm of 215 acres, without Inheritance Tax (IHT) reliefs, 40% of the farm’s land would need to be sold to fund inheritance tax liabilities.
It also suggested that diversified farmers could be hit harder as potentially 46-54% of their farm’s land would need to be sold.
The CLA believes that as a result this poses a real risk to the capacity and efficiency of the food sector in the UK.
Also Read: ‘Powerful rationale’ for increasing ag-budget to £3.8bn by 2027 – CLA
The post Poll shows uncertainty over tax is a key issue for family farms appeared first on Agriland.co.uk.
Continue reading on the Agriland Website...
More than 500 farmers and landowners took part in the poll against the backdrop of concerns that the Labour Government may change agricultural property relief (APR) and business property relief (BPR) in the budget next month.
According to the results of the poll:
- 86% of respondents said it was “likely” that some or all of their land would have to be sold on their death, if inheritance tax reliefs are scrapped;
- Less than 5% said it was ‘unlikely’;
- More than 90% said scrapping reliefs will damage the UK’s food security in the long run;
- Just 5% said they did not believe the move would hit food security.
According to the CLA says the findings of the poll demonstrate the “danger of removing or curtailing reliefs” at what they said is a crucial time for the UK’s farming industry.
Victoria Vyvyan, president of the CLA, said: “This government has promised economic growth but at the moment, in the rural sector, we’re not feeling the love.
“The government has said it won’t increase taxes on working people. Farmers are working hard around the clock feeding the nation and looking after the environment, and uncertainty over tax is one of the most pressing challenges facing the rural sector.”
Family farms
Vyvyan has warned that removing or capping inheritance tax reliefs would have a major impact on the viability of a family farm and potentially “jeporadise” the future of rural businesses.
“At a time of profound change in the industry, we need stability for our businesses while we adjust to new agricultural policies,” she warned.
According to the CLA the APR exists “to ensure the continuance of farming after the death of the farmer”, while BPR “fulfils the same objective for other types of family businesses”.
The association said that while it is not possible to establish the exact impact on rural businesses of removing inheritance tax reliefs, it has estimated that if it led to a reduction of 5% in the number of businesses registered in rural areas, this would equate to over 27,500 businesses and potential unemployment of 190,000.
For an average family farm of 215 acres, without Inheritance Tax (IHT) reliefs, 40% of the farm’s land would need to be sold to fund inheritance tax liabilities.
It also suggested that diversified farmers could be hit harder as potentially 46-54% of their farm’s land would need to be sold.
The CLA believes that as a result this poses a real risk to the capacity and efficiency of the food sector in the UK.
Also Read: ‘Powerful rationale’ for increasing ag-budget to £3.8bn by 2027 – CLA
The post Poll shows uncertainty over tax is a key issue for family farms appeared first on Agriland.co.uk.
Continue reading on the Agriland Website...
