Chamberlain challenges changes to inheritance tax for farmers

Scottish Liberal Democrat deputy leader and MP for North East Fife, Wendy Chamberlain, has challenged the Government’s proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) for farmers, in particular raising the impact on tenant farmers.

During a Westminster Hall debate on Inheritance Tax Relief for farmers, Chamberlain highlighted the difficulties the changes impose on farmers with agricultural tenancies. This is where farmers can pass on their tenancy as part of their estate and is significantly more common in Scotland due to the Agricultural Holdings (Scotland) Act 1991.

The changes to APR mean that many tenant farmers will no longer be able to afford to pass their land on, since they do not own the land and therefore they are not able to sell any of it to cover the tax. This will result in many families who have been farming the same land for generations having to leave it.

Wendy Chamberlain said:

“The changes to both agricultural and business property relief have been an exercise in failure, a failure in political judgement, communication and based on the latest OBR analysis, is not even going to achieve policy outcomes either.

“We need less loopholes, simpler taxation and a way to help working people in this country.

“We’ve heard broad concerns about the future of farms if they are forced to sell off land piecemeal to meet bills, this just isn’t an option available to tenant farmers.

“Farmers face unprecedented pressures, from increased fuel costs, fertilizer costs, feed costs and increasingly unpredictable weather.

“The last thing we should be doing is making farming harder, it is the epitome of biting the hand that feeds.”