Pleas to ditch 'disastrous' tax raid on farms

CHANCELLOR Rachel Reeves has been urged to U-turn on her inheritance tax raid on farmers instead of merely tweaking the hated policy as has been reported.

- By Katie Harris Senior Political Correspondent

Warned... Chancellor Rachel Reeves

The Government is said to be looking at changes to its so-called family farm tax ahead of next month’s Budget in order to reduce the impact on small farms.

Discussions have reportedly focused on increasing the £1million threshold of combined agricultural and business property, or £3m for couples, above which farmers face paying a 20% rate of inheritance tax from April — having previously been exempt from paying any.

One option would involve raising the limit to £5m before the standard 40% inheritance tax rate applies.