The NFU is one of several organisations to send a letter to the Chancellor 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.”
