Inheritance tax plea ahead of Autumn Budget

CHANCELLOR Rachel Reeves is facing fresh pressure from farmers to axe plans to introduce inheritance tax on farming land and businesses.

- REBECCA SPEARE-COLE

Ahead of the Budget next week, the National Farmers’ Union (NFU) said Ms Reeves “cannot keep taxing businesses into the ground”.

‘The union said the Government must acknowledge the volatile nature of farm business income and provide greater stability as it criticised policies Labour has introduced.

‘The Chancellor's plans to introduce a 20% rate on agricultural land and businesses worth more than £1m have become a political flashpoint for a sector struggling with rising costs, tough market conditions and worsening climate impacts.

NFU president Tom Bradshaw warned that family farms across the UK are halting investment or anticipating having to sell parts or all of their farm to pay an inheritance tax bill.

Some horticultural businesses have also seen employment costs increase by hundreds of thousands of pounds after Ms Reeves hiked employer national insurance contributions in last year’s budget, Mr Bradshaw warned.