Aberdeenshire North and Moray East MP Seamus Logan has received a disappointing response from the UK Treasury to his letter to the Chancellor asking for a review of Budget changes to Agricultural Property Relief and Inheritance Tax.
In the Autumn Budget, Chancellor Rachel Reeves announced changes to APR and Inheritances Tax on assets worth over £1 million, with historic data used to estimate that around 520 estates in the UK would be affected by these changes.
At a debate in Westminster yesterday (Tuesday), Mr Logan raised the failure of the UK Government to provide clear evidence for this £1 million threshold. This follows on from testimony given at the EFRA Committee in December where farming representatives claimed that the UK Government’s data set was actually out of date and these reforms were more likely to affect around 2.500 farms per year instead.
Commenting, Seamus Logan MP said:
“The response from the UK Government was very frustrating as it did not address the concerns of the farming community but simply maintained the extant Treasury position. There have been large protests at Westminster and my colleagues and I have received numerous emails from worried constituents. The Treasury just don’t seem to want to hear these concerns.
“As soon as the Chancellor made her Budget announcement I was contacted by a number of very upset farmers in my constituency. They were concerned that these changes to tax reliefs could force them to sell all or part of their farms, it could leave them unable to pass the farms on to their families and it could lead to reduced food security for Scotland and beyond. Some of these farms had been in the same family for many generations and although many have high value assets given the machinery and equipment needed for their work, they remain cash poor in an industry where they have been squeezed from all sides as vital food producers.
“I wrote to the Chancellor back in November to raise these concerns and asked her to revise her reforms. I believe the reply from the Exchequer Secretary to the Treasury and UK Minister for Taxation, James Murray, is inadequate in addressing the worries for farmers in my constituency as a result with his reiteration of the government’s reasoning behind their decision.
“Now that there is an issue with conflicting data results and a question mark over the accuracy of government data used to justify the £1 million threshold, then the Treasury must surely pause these measures and address any discrepancies as a result.”
