A group of farming and business groups have called for ‘urgent transparency’ on the reforms to Business Property Relief (BPR) and Agricultural Property Relief (APR), after ministers refused to answer key questions on the details of their controversial family farm tax policy.
The organisations have writtne to the Chancellor, after a Freedom of Information (FOI) request from the NFU – one of many it has currently lodged with Defra – along with a similar request from the CLA, was submitted after the government dismissed, ‘without justification’, the alternative ‘clawback’ option proposed by industry bodies.
This option would tax business assets at the full 40% inheritance tax rate, but only if sold by a family successor within seven years of the owner’s death. This proposal offers a more finessed policy, both meeting the government’s money-raising objectives while avoiding irreparable damage to the family business community.
The Treasury claimed this alternative would raise ‘much less’ than current proposals but has refused to release the modelling for that conclusion, even after both the NFU and CLA individually submitted FOI requests. The department stated the information would not be in the public interest.
The organisations said the Treasury’s dismissal of the policy and refusal to share its analysis has undermined businesses’ trust in policymaking, especially as the Office of Budget Responsibility, which ministers continue to cite for support, describes the government’s figures “highly uncertain”. The policy has also been challenged by the Efra Select Committee and Labour’s own tax expert.
The letter is urging the Treasury to publish its analysis of the reforms and the clawback alternative to allow for proper public scrutiny.
‘Cruel tax’
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.”
Signatories include:
- Tom Bradshaw, President, National Farmers Union
Victoria Vyvyan, President, Country Land and Business Association
Neil Davy, Chief Executive, Family Business UK
George Dunn, Chief Executive, Tenant Farmers Association
Debbie Walker, Director General, British Holiday & Home Parks Association
Ben Cowell, Chief Executive, Historic Houses
Fran Barnes, Chief Executive, Horticultural Trades Association
Andrew Judd, Chief Executive, National Association of Funeral Directors
Sue Robinson, Chief Executive, National Franchised Dealers Association
Emma Mosey, Chair, Farm Retail Association
Rob Driscoll, Director of Legal and Business, Electrical Contractors’ Association
Chris Cassley, Policy Director, Construction Plant-hire Association