Tractors were once again in Central London on Monday (10 February 2025) protesting various government policies that farmers believe are anti-farming, particularly the proposed changes to agricultural property relief (APR) and business property relief (BPR) for Inheritance Tax.
The protest was timed to coincide with the parliamentary debate following the online petition to "scrap the family farm tax".
The Office for Budget Responsibility provided a supplementary forecast on 22 January 2025 about the costs of the proposed changes to APR and BPR. The estimate is that this would raise £500m by 2029-30.
This estimate is, however, given a high uncertainty rating mainly because the behavioral response to the measures, given a wide range of tax planning options which could be used to respond to these changes, means the revenue that will be raised over the next 20 years is very difficult to predict and is unlikely to remain steady during that period.
Typically, people consider their Inheritance Tax planning in their 60s and 70s, post retirement.
It may be that for those with agricultural property or businesses that is shifting forwards to 50s and 60s, and retirement and succession planning are being brought forward and possibly implemented over a longer period.
Time will tell; at the moment the devil is in the detail, and significant decisions will likely have to wait until the legislation is available.
Farm leaders have pledged to continue their fight against the government's plans to introduce a 20% inheritance tax on agricultural assets, vowing to keep up the pressure until Sir Keir Starmer's government reverses its decision.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
