Farmers from around the UK came to Whitehall on Monday to protest against changes to inheritance tax (IHT) reliefs. Ben Rosen TEP, Partner and head of the Quastels Private Wealth and Tax team, was in the heart of the action to find out just what they had to say.
Why Farmers are Protesting
The farmers at the protest told Ben that they were worried for the future of British farming if the government proceeds with its plans to limit claims for agricultural property relief (APR) and business property relief (BPR) to a rate of 50% on assets over £1 million. There were concerns that given the high value of farmland compared to the profits made from agriculture, farmers would not be able to afford to pay IHT on death without selling the farm.
This could mean families losing farms they have owned for generations. Farmers also thought it likely it would deter the next generation from pursuing a career in agriculture. Often the children of farming families have spent most of their lives working for little financial reward on the family farm, in the expectation that one day they will inherit it. If they think the farm is instead going to have to be sold to pay tax when their parents die, that will look a lot less attractive.
The Impact of These Changes
Farmers spoke of their anger at the proposed changes, and thought more direct action such as withholding food might follow if the government continues on its course.
The changes to APR and BPR mean that farmers, landowners and business owners are going to be more reliant than ever on expert advice to help them plan their succession in the most tax efficient way
The team at Quastels are here to help. Ben has been joined by Jack Burroughs TEP, previously of the Country Land and Business Association’s tax team. Between them they have a great depth of experience and expertise in advising farmers, landed estates and family businesses.
Get In Touch
For those worried about the impact changes to IHT reliefs could have for them, Ben and Jack will be able to help them understand their options and find the most tax-efficient solutions that meet the needs of their families and businesses. They also have colleagues at Quastels who specialise in helping farms, estates and businesses in other areas of law, including employment, property, commercial law and dispute resolution.
