The NFU, along with other business groups, have sent the Chancellor an open letter calling for transparency over changes to Business Property Relief (BPR) and Agricultural Property Relief (APR).
A freedom of information (FOI) request has been lodged by the NFU, one of many reportedly sent into Defra, after the government dismissed the alternative ‘clawback’ option proposed by the industry.
This would see businesses taxed the full 40% rate of inheritance tax on assets sold by a successor within seven years of the owner’s death. According to the NFU, this would offer a more finessed policy, raising the funds required by the government while avoiding damage to family farms.
The Treasury claimed that this would raise much less than current proposals, however, it has refused to release the modelling for that conclusion.
The open letter urges the Treasury to publish its analysis of the reforms and the clawback alternative to allow for public scrutiny.
NFU president Tom Bradshaw said: “The family farm tax is cruel, unfit to become legislation and is triggering a crisis of confidence across the farming sector.
“As we outlined in our Spending Review proposals, one of the most significant actions the Chancellor could take to restore trust and unlock investment and growth is to urgently review the clawback proposal.
“The Efra Committee recently underlined the importance of rebuilding trust in the industry. As highlighted in the joint industry letter, publishing the government’s analysis of alternative Inheritance Tax reform options and engaging in constructive dialogue around a more targeted approach would be a strong first step in the right direction.”
Signatories to the letter include:
- Tom Bradshaw, president, National Farmers Union
- Victoria Vyvyan, president, Country Land and Business Association
- Neil Davy, chief executive, Family Business UK
- George Dunn, chief executive, Tenant Farmers Association
- Debbie Walker, director general, British Holiday & Home Parks Association
- Ben Cowell, chief executive, Historic Houses
- Fran Barnes, chief executive, Horticultural Trades Association
- Andrew Judd, chief executive, National Association of Funeral Directors
- Sue Robinson, chief executive, National Franchised Dealers Association
- Emma Mosey, chair, Farm Retail Association
- Rob Driscoll, director of Legal and Business, Electrical Contractors’ Association
- Chris Cassley, policy director, Construction Plant-hire Association