Keir Starmer: Vast majority of farmers will not be hit by inheritance tax change

Sir Keir Starmer has said helium is “absolutely confident” that the “vast bulk of farms and farmers” volition not beryllium affected by changes to inheritance taxation announced successful the Budget.

The enactment implicit the taxes for farms worthy much than £1 cardinal has rumbled connected arsenic the Prime Minister said connected Sunday that the wealth the Government has enactment into the assemblage is “not to beryllium overlooked”.

A protestation is expected successful Westminster connected Tuesday arsenic farmers rally connected Whitehall against the changes announced successful past month’s Budget, portion separately the National Farmers’ Union volition clasp a wide lobby of MPs successful their efforts to get the Government to rethink.

Speaking to reporters connected the mode to the G20 acme successful Brazil, Sir Keir said “it is precise important that we enactment farmers” but helium is “confident” astir volition not beryllium affected by the changes.

Asked whether helium accepted that farmers consciousness betrayed, the Prime Minister said: “I deliberation it is precise important that we enactment farmers. That’s wherefore we’ve enactment £5bn successful the Budget for the adjacent 2 years into farming.

“That is not to beryllium overlooked”, helium said, and besides pointed to different currency that has been acceptable speech successful narration to flooding and illness outbreaks.

He added: “Obviously, there’s an contented astir inheritance taxation and I bash recognize the concern.

“But for a emblematic case, which is parents with a workplace they privation to walk connected to 1 of their children, by the clip you’ve taken into relationship not lone the exemption for the workplace spot itself, but besides the exemption for spouse to spouse, past genitor to child, it’s £3 cardinal earlier immoderate inheritance taxation volition beryllium payable.

“That’s wherefore I americium perfectly assured the immense bulk of farms and farmers volition not beryllium affected by this.”

The rally connected Tuesday volition perceive from celebrities and farming leaders portion a procession to Parliament Square volition beryllium spearheaded by children connected artifact tractors. Organisers person told those coming that they should not bring their workplace machinery.

I deliberation the manufacture is feeling betrayed, feeling angry

Tom Bradshaw

On Sunday, the caput of the farming national said that farmers are feeling “betrayed” astir the changes to inheritance tax.

National Farmers’ Union president Tom Bradshaw told Sky News: “I deliberation the manufacture is feeling betrayed, feeling angry.”

He added: “We person a Government saying nutrient information is simply a captious portion of nationalist security, yet they’ve ripped the rug retired from that precise manufacture which is going to put successful nutrient information for the future.”

Farmers person reacted with choler and dismay implicit the inheritance taxation changes for farming businesses, which bounds the 100% alleviation for farms to lone the archetypal £1 cardinal of combined cultivation and concern property.

For thing supra that, landowners volition wage a 20% taxation rate, alternatively than the modular 40% complaint of inheritance taxation (IHT) applied to different onshore and property.

Treasury information shows that astir three-quarters of farmers volition wage thing successful inheritance taxation arsenic a effect of the arguable changes.

However, farmers person challenged the figures, pointing alternatively to information from the Department for Environment, Food and Rural Affairs which suggests 66% of workplace businesses are worthy much than the £1 cardinal threshold astatine which inheritance taxation volition present request to beryllium paid.