TEESDALE’S MP Sam Rushworth has called on the government to look again at the removal of inheritance tax relief for farmers.
Under chancellor Rachel Reeves plans, from April 6 next year, the full 100 per cent relief from inheritance tax will be restricted to the first £1m of combined agricultural and business property.
A parliamentary debate was triggered after an online petition against the move attracted almost 150,000 signatures.
Speaking during the debate on Monday, February 10, Mr Rushworth said farmers in the Bishop Auckland constituency were worried about the changes.
He added that farmers understood the need to close loopholes where agricultural land is being snatched up by billionaires to avoid tax.
He said: “They are not asking for a full U-turn by the way, they are asking for some meaningful tweaks that will help the policy to better target the goals that it intends to achieve.”
He said farmers from Teesdale wanted answers on thresholds because the 50 per cent agricultural property relief does not close the loophole on the wealthiest.
“Someone who inherits a £5m farm is not a millionaire; they are the custodian of agricultural land, with a responsibility to farm it to produce food for the nation.
“If they sell a £5 million farm they become a millionaire, but they do not become one simply by inheriting it.”
He added that because the threshold is so low “it means that sadly some of the family farms in my constituency will really struggle to pay their inheritance tax bill.”
Mr Rushworth said there is “no shame” in looking at the policy again.
Mr Rushworth voted against an earlier parliamentary motion to scrap the chancellor’s changes to the Agricultural Property Relief (APR) and Business Property Relief (BPR) schemes.
Last month, the MP visited Upper Teesdale Agricultural Support Services (Utass) along with Defra minister Daniel Zeicher when he spoke to more than 20 local farmers as well as representatives of the National Farmers Union (NFU).
He also visited a farm in Eggleston where the challenges facing upland farmers was discussed.
At the time he said: “I am so proud of our local farmers who work really hard to maintain the landscape and produce food.
“I will continue to work with Utass, the NFU and local farmers.”
During the visit he set up a quarterly farming forum.
