The National Sheep Association (NSA) says the time is right for a thorough government review of industry proposals to the proposed changes to inheritance tax (IHT) relief laws on agricultural property.
With just four weeks until the chancellor’s 2025 autumn budget, set for November 26, NSA believes a Government commitment should be made to a review, including an in depth consultation, to examine alternatives to the current business property relief and inheritance tax proposals.
Farming organisations have pleaded for suggestions such as a clawback mechanism, or a higher asset value threshold to be considered instead, and professional associations and organisations have costed alternative options that would raise taxation funds without putting farming succession at risk.
While the NSA is not an expert voice on the subject, the sheep farming organisation is in favour of such alternatives, and supports the principle of taxing farmland at the point of sale or ‘cashing in’ rather than on inheritance and succession.
NSA chief executive Phil Stocker said: “As we approach the chancellors 2025 autumn budget statement NSA is adding its voice to those calling for a review of the proposed changes to agricultural property relief.
“It is clear the proposals will have a serious impact on many working family farms where profitability bears little relationship to asset value and proposed taxation levels.”
Mr Stocker continued: “The recent Centre for Analysis of Taxation report said that changes to proposals for Inheritance Tax and Business Property Relief could be better targeted to protect working farms (and therefore economic activity and food security), and at the same time raise more funds for HMRC and this advice is something that should be heeded.
“With the autumn statement around the corner it is surely time to relook at the current proposals and construct something that is fit for purpose with clear financial and structural outcomes.”
