Council tells Reeves to rethink farm tax

DENBIGHSHIRE Council is calling on the Prime Minister and Chancellor of the Exchequer to reconsider and reverse their decision on the new inheritance tax threshold for farms.

- By RICHARD EVANS Local Democracy Reporter

A row broke out during a meeting at the council's Ruthin County Hall HQ this week when a motion was put on the table to write to the UK Government.

Cllr Hugh Evans put forward the motion stating that the new inheritance tax threshold for farms would have a detrimental impact on farmers, their families, and the next generation of young farmers. But Labour leader Cllr Jason McLellan defended the tax on behalf of his party, leading to one rural member passionately criticising Cllr Mclellan.

From April next year, farmers who inherit agricultural land or assets worth £1m or more must pay 20% inheritance tax when they did not before, with certain exemptions and variations in place. For instance, a couple could pass on a farm worth up to £3m.

Introducing the motion, Cllr Evans said: "Having spoken to many farmers, in my ward, locally, and nationally, I've seen and heard firsthand the terrible consequences the implications of the inheritance tax will have on some families, and it is clear to me now that the significant impact of this will have on the industry, the wider economy, and our rural areas.

"I have no problem paying tax. We all have to pay tax, legal responsibility, but it just has to be fair and fairer, and it just has to be more linked to income and profit. You'll all have seen the demonstrations in London. The only benefit of the statement of the chancellor has brought is that it has united the industry, and those strong feelings out there."

He added: "The value of [farm] land does not correspond to the income it generates, and that is really important.