A RISE in inheritance tax (IHT) relief for famers has been described as a "step forward," but not enough.
Tim Sedgewick, a director at H&H Land & Estates, welcomed the increase in IHT relief on farms and small family businesses but argued that further changes are needed to truly support the agricultural sector.
Mr Sedgewick said: "Just before Christmas, the Government finally bowed to reality and moved the dial on APR and BPR, lifting the Inheritance Tax (IHT) threshold on farms and small family businesses from £1,000,000 to £2,500,000 per spouse."
"For farming families like my own, that is definitely some progress.
"It recognises, at least in part, that modern farms are asset-rich, cash-poor businesses, that should not be penalised simply because land values have risen on paper."
The raised threshold applies per spouse.
However, Mr Sedgewick said the changes do not go far enough to address the challenges faced by generational farming businesses.
He said: "Family farms are long-term, generational businesses.
"They are not tax planning vehicles.
"If the Government genuinely wants to support British agriculture, rural communities and our dwindling national food security, it must go further and provide certainty, simplicity, and fairness, not half-measures that still leave too many families exposed."
He also argued that the support needed by farmers goes beyond inheritance tax reform.
He said: "Farmers are currently being buried under layers of regulation and red tape in the name of standards, sustainability, and compliance, while at the same time we are quite happy to import food from overseas producers who do not play by those same rules.
"That is not environmental leadership; it is hypocrisy.
"It undermines British farmers and exports our values along with our food production."
He said the H&H Land & Estates team remains committed to supporting farmers.
He said: "Our team here at H&H Land & Estates, many who are from farming families themselves, will continue to stand shoulder-to-shoulder with farmers, helping them plan, protect and future-proof their businesses, while calling out policy that sounds good in Westminster but doesn’t work in our farmers’ fields."
Share