Starmer sneaks out major U-turn as ‘personal cost won’t be forgotten’ | Politics | News
The personal costs borne by farming families will not be forgotten following the government’s cut in inheritance tax, the Conservatives have warned.
Labour’s watered-down plans would see the aid threshold for farmers increased from £1 million to £2.5 million.
This comes after months of protests and warnings over farmers considering suicide to avoid taxes as they pass their businesses on from generation to generation.
Shadow Environment Secretary Victoria Atkins criticized the Government for making the announcement so close to Christmas as Parliament is in recess and is unable to scrutinize it “properly” at the moment.
Speaking to Sky News on Wednesday, he said: “While this is a welcome U-turn, it has come at a very, very high economic cost because we know business investment and business confidence have fallen.
“This Government is overseeing record farm closures, but it is also at a huge personal cost for many families, and I suspect it will not be forgotten by them.”
He added: “Sneaking out the day before Christmas Eve means, of course, that we have no chance of properly examining this in Parliament.”
The higher threshold, which will come into force in April, will allow spouses or civil partners to transfer up to £5 million of eligible agricultural or business assets between them before paying inheritance tax, the Department for Environment, Food and Rural Affairs (Defra) said on Tuesday.
Above this allowance, farmers will receive a 50% discount on qualifying assets and pay a reduced effective rate of up to 20% instead of the standard 40%.
According to the government, the number of estates subject to higher inheritance tax will be reduced from around 2,000 in the original plans to 1,100, which will only affect the largest farms.
Farmers currently do not pay inheritance tax on the agricultural and commercial assets they transfer.
Under Labour’s original proposal, the full 100% benefit would be limited to the first £1 million of property.
The Daily Express’ Save Britain Family Farms campaign campaigned for the abolition of inheritance tax.
