Said NFU President Tom Bradshaw: “Let me be clear – changes to agricultural property relief and business property relief would be a devastating blow to British farming as we know it, the effects of which will be felt for generations to come.
“It’s hard to see anything which would destroy the new government’s relationship with farmers more completely, or do more damage to family farm businesses, be they the owners of farms or the tenants who farm them for the landlord.”
Signatories of the letter include the four farming unions – the NFU, NFU Cymru, NFU Scotland and Ulster Farmers’ Union.
Currently, Agricultural Property Relief and Business Property Relief allow working farm businesses to be passed to the next generation of farmers without incurring inheritance tax charges which they would be unable to pay without selling those businesses.
In particular, APR is an essential relief for farmers who rent land as part of their business model, with 64% of farmland occupied by farmers who rent some or all of their land.
Speculation hit the headlines last week when the BBC reported that the government is considering raising revenue by revising inheritance tax rules as part of its Autumn Budget, due to be announced this week.
Mr Bradshaw added: “The NFU, alongside other farming organisations, has set out to the Chancellor how Inheritance Tax reliefs underpin viable working farming businesses, of all shapes and sizes.
“Whether that’s large or small family farms, tenant farms or contracting businesses, almost every business producing food for the nation’s tables would be impacted.
“The average return of working farm businesses is less than 1%. Most would be unable to meet inheritance tax charges if APR or BPR was stripped away.”
The NFU President also warned legislated environmental targets could be in jeopardy as farm businesses manage the land and invest in environmental and biodiversity delivery.
“For the future of our family farms, food security and the environment we are calling on the Chancellor to urgently consider the sizable effect changes to APR and BPR could have. Farmers have been let down year after year by empty words and policies that negatively impact their businesses. I am imploring the Chancellor, don’t let that happen again on 30 October.”
