Farms tax grab is due to 'inexperience or fundamental misunderstanding...

INDUSTRY CHIEF SLAMS REEVES' INHERITANCE RAID

- STEPH SPYRO

LABOUR'S inheritance tax raid on farmers is based on a "fundamental misunderstanding" of how family businesses work, an industry chief warns.

The sector has been in uproar over the Government's IHT hike from last year's Budget. It will take effect next April.

The Treasury estimates just 500 estates a year will be impacted by its changes to agricultural and business property reliefs.

But farming bodies have warned the true figure will be significantly higher.

Fourth-generation farmer Gavin Lane, president of the Country Land and Business Association, blasted: "This Government has decided agricultural property relief and business property relief are 'loopholes' being exploited by wealthy individuals to avoid tax.

"Their ministers tell us repeatedly that they're targeting those who buy farmland purely as a tax shelter, pricing out young farmers. They say only the wealthiest will be affected.

IDEOLOGY

"They insist the vast majority of family businesses will be fine. But here's what is really happening.

"Whether through ideology, inexperience or a fundamental misunderstanding of how family businesses work, this Government is treating intergenerational asset transfer as a problem to be solved rather than the foundation of sustainable, long-term investment.

"We must continue to demand evidence not ideology.

"When policy is based on feelings rather than facts, we should call it out.

"When the science is unclear or still unfounded, we need to refuse to accept made-up answers. We must insist on rigorous, evidence-based policy-making"