What is the inheritance tax-shake up for farmers and why are they protesting

Thousands of farmers are descending connected the streets of Westminster contiguous successful protestation astatine the government's shake-up of inheritance tax. Here The Mirror looks astatine the taxation changes

Thousands of farmers are descending connected the streets of Westminster contiguous successful protestation astatine the government's shake-up of inheritance tax.

Former Top Gear presenter Jeremy Clarkson is set to beryllium among them - defying doctors' orders aft a caller bosom cognition to articulation the demonstration.

The National Farmers' Union (NFU) is holding a wide lobby of MPs with 1,800 of its members to impulse backbenchers to request the Government U-turns.

Thousands much are expected to articulation a abstracted rally successful Whitehall arsenic they protest. Here The Mirror looks astatine the taxation changes and wherefore the farmers are protesting.

What is changing and however overmuch inheritance taxation volition farmers present pay?

Chancellor Rachel Reeves announced astatine past month's Budget farms worthy much than £1million volition beryllium present taxable to inheritance tax.

Previously farming businesses qualified for 100% alleviation - paying zero inheritance tax. Since 1984 landowners person been capable to walk this connected without being hit.

But present the taxation is being imposed connected farms worthy much than £1 million, with an effectual taxation complaint of 20% connected assets supra the threshold. This is little than the modular 40% rate.

It is claimed that the existent threshold earlier paying inheritance taxation could beryllium arsenic overmuch arsenic £3 million, erstwhile exemptions for each spouse successful a mates and for the workplace spot are taken into account.

The Government says astir 500 claims a twelvemonth are expected to beryllium affected - but this is hotly disputed by the farmers' union, who accidental it volition beryllium considerably more.

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What has farmers' national said?

The National Farmers' Union (NUF) President Tom Bradshaw has accused the authorities of a "betrayal" of farmers successful an aggravated response.

He told Sky News connected Tuesday: "There's ever been an understanding, a contract, betwixt farming and society, farming and the government, ever since the Second World War, and this Labour Government has conscionable destroyed that declaration with the changes they projected to the inheritance tax."

He said NFU members are "asset-rich but cash-poor". "We'd emotion to wage much tax," Mr Bradshaw added. "If we get due margins from nutrient production, and we extremity up swelling the Treasury coffers, bring it on.

"But astatine the infinitesimal the proviso concatenation doesn't springiness america those returns that alteration america to prevention the wealth to wage the inheritance taxation that this Government present wants to take."

What has Keir Starmer said?

Speaking to reporters earlier this week connected the mode to the G20 summit, Keir Starmer insisted the "vast majority" of farms would beryllium unaffected by the changes arsenic helium doubled down.

He said :“I deliberation it is precise important that we enactment farmers. That’s wherefore we’ve enactment £5billion successful the Budget for the adjacent 2 years into farming.

"That is not to beryllium overlooked. That is the azygous biggest sum of wealth successful a Budget implicit a two-year play that has ever been enactment down successful narration to farming." He besides pointed to £250million to assistance with flooding and illness power for farmers.

But helium admitted: "Obviously, there’s an contented astir inheritance taxation and I bash recognize the concern."

Will the Government U-turn connected the changes?

A U-turn appears highly improbable - contempt the farmers' protestation today.

In a associated connection with the Environment Secretary Steve Reed past night, the Chancellor said farmers were the backbone of Britain and acknowledged the "strength of feeling" from farming and agrarian communities successful caller weeks.

They insisted they were "steadfast" successful their enactment of British farming, saying: "It's wherefore we are investing £5 cardinal into farming implicit the adjacent 2 years - the largest magnitude ever directed towards sustainable nutrient production, agrarian economical maturation and nature's betterment successful our country's history.

But they said: "With nationalist services crumbling and a £22 cardinal fiscal spread that this Government inherited, we person taken hard decisions.

"The reforms to cultivation spot alleviation guarantee that wealthier estates and the astir invaluable farms wage their just stock to put successful our schools and wellness services that farmers and families successful agrarian communities trust on."