A family business in Aberdeenshire faces a £5 million tax bill when Labour’s inheritance tax changes come into force next year, it has emerged.
Gordon and Buchan MP Harriet Cross said the revelation during a meeting with a rural business in her constituency underlined that Labour’s removal of business property relief will have “catastrophic” consequences.
The same business told Ms Cross that in addition to this, it was now paying £300,000 more every year in National Insurance contributions.
It comes as Ms Cross described Defra secretary Emma Reynolds as “ignoring the elephant in the room” after she avoided any mention of Labour’s family farm tax at an NFU-hosted fringe event at her party’s conference in Liverpool yesterday.
At last year’s Autumn Budget, the Labour government announced from April 2026, the availability of 100% relief for agricultural and business property would be capped.
Assets eligible for 100% APR and assets eligible for 100% BPR would qualify for full relief up to a sum of £1m. 50% relief would apply thereafter.
Scottish Conservative MP for Gordon and Buchan, Harriet Cross, said: “It’s heartbreaking to hear the devastating impact that Labour’s inheritance tax changes will bring to businesses across Aberdeenshire.
“A £5 million tax bill will cripple any business, no matter the size, in addition to the burden of now having to pay hundreds of thousands in National Insurance contributions.
“In the Autumn Budget, it is vital Labour wakes up to the catastrophic damage they are causing to our rural communities and businesses.”
Responding to there being no mention of Labour’s family farm tax at their party conference yesterday, Ms Cross said: “It’s appalling that the new Defra secretary refused to address the elephant in the room at the NFU fringe event.
“This speaks volumes for the lack of empathy shown by Labour towards our farmers and the vital job they do in protecting our food security.
“Farming is not just a job; it is a way of life that has been passed down from generation to generation.
“Labour’s deeply damaging family farm tax threatens the very existence of this and must be reversed to ensure the industry can survive through this UK Government onslaught.”
