‘Not too late to avert damage of Family Farm Tax’ – Robin Swann MP

Responding to the publication of a Centre for the Analysis of Taxation (CenTax) report outlining the scale of the impact of the proposed Family Farm tax and how this could by prevented, South Antrim MP Robin Swann has called on Prime Minister Keir Starmer and Chancellor Rachel Reeves to take the report findings on board.

Mr Swann said of the report:

“CenTax, who ironically gave the Chancellor the idea for the farm inheritance tax in the first place, have made it clear how devasting of an impact this tax will have on too many of our farms. The report found that only 20% of non-farming landowners, the intended target of this tax, would be affected, whereas 67% of the UK’s farm-owners would be hit.

Included in this report are two options for “better targeting the reform.”

These proposals have been outlined by the National Farmers Union as follows:

“Minimum share rule: If APR and BPR qualifying assets make up more than 60% of the total value of the deceased’s individual net worth at death, they would have access to a higher combined allowance of £5m where no IHT is due. 50% relief would continue to apply above £5m. Those failing the 60% test would lose access to any reliefs. This aims to separate farmers from those who invest part of their portfolio in farmland.  

“Centax estimates this would raise 71% more tax revenue than government’s current proposal.”

“Upper limit on relief: This would apply 100% relief on the first £2m of APR and BPR qualifying assets, then 50% relief up to £10m. Any value over £10m would not have access to reliefs. This increase in the combined allowance from £1m to £2m is funded by removing relief on the wealthiest estates.  

“Centax estimates this would raise the same tax revenue as government’s current proposal.”

There is also scope to have a combination of these measures put in place.

Mr Swann commented:

“It is not too late to avert the damage that this farm will do to Northern Ireland’s family farms. There are practical solutions on the table, and I strongly urge the Prime Minister and the Treasury to take action before the end of the financial year to protect our farmers and our rural communities.”

Note:

1. NFU Press Release - https://www.nfuonline.com/updates-and-information/centax-impact-assessment-on-iht-reform/