Rachel Reeves will find yourself reversing her resolution to cost extra inheritance tax on farms, Ruth Davidson has predicted.
Discussing yesterday’s price range, Ms Davidson mentioned she would not imagine the chancellor’s monetary plan is an omnishambles, however of all of the measures, she believes inheritance tax on farms is more likely to be reversed.
Funds newest: Labour enjoying ‘foolish video games’, says IFS
The reform on inheritance tax means from April 2026, the £1m of mixed enterprise and agricultural property will proceed to not be taxed.
However for property over £1m, inheritance tax will apply with 50% reduction (at an efficient charge of 20%).
Ms Davidson mentioned: “1,000,000 seems like lots.
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‘Elevating taxes was not a simple resolution’
“However for those who’ve received a few farm buildings, sheds, equipment sheds, some land, like virtually all household farms, even small household farms, are above that threshold.
“It’s a massive whacking great cash tax bill you have to give the government if you pass on your farm to your kids and they have to find, and the thing about farmers is they might be land rich, but they’re pretty much cash poor because farming is not massively profitable.”
The Scottish politician pointed to the outcry from farmers on social media, who, she mentioned, are posting “heartbreaking” 30-second movies from their tractors.
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Funds defined in 60 seconds
“The thing is that losing a farm is not like losing another business,” she added.
“It can’t come back, and the reason I know that is because that line is the exact line that Keir Starmer gave to the NFU conference last year.”
Celeb farmer Jeremy Clarkson – whose Amazon Prime Clarkson’s Farm paperwork his forays into the world of farming – was one other of those that reacted to the tax hike on X.
He wrote: “Farmers. I know that you have been shafted today. But please don’t despair.”
Whereas Location, Location, Location presenter Kirstie Allsopp added: “Rachel Reeves had f****d all farmers, she has destroyed their ability to pass farms on to their children, and broken the future of all our great estates, it is an appalling decision which shows the government has ZERO understanding of what matters to rural voters.”
The “pasty tax” refers to a proposal by Mr Osbourne within the March price range of 2012 which aimed to make scorching takeaway snacks topic to twenty% VAT.
The tax induced outrage amongst bakers on the time, and even led to pasty makers protesting exterior Downing Avenue to ship a petition opposing the controversial tax.
