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Farmers’ protest live: Police probe into tractor ram video as Clarkson warns inheritance tax a ‘hammer blow’

Farmers from across the country have travelled to London this morning to join protests over changes to inheritance tax rules

Alex Ross,Holly Evans
Tuesday 19 November 2024 14:29 GMT
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Farmers on tractors drive through Westminster ahead of protests

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The Metropolitan Police have said tractor drivers who ploughed through barriers at the farmers’ protest in Westminster will be reported.

Scotland Yard said that they had been engaging with those driving the vehicles but said that driving through a no entry sign was “not acceptable”.

Taking to the stage, Jeremy Clarkson urged Rachel Reeves to admit her proposed inheritance tax hikes for farmers was a “mistake”, as he described it as a “hammer blow” to the agricultural community.

Speaking to protesters on stage in Whitehall, the TV presenter said: “For the sake of everybody here, and all the farmers stuck at home today paralysed by a fog of despair by what’s been foisted upon them, I beg the government to accept this was rushed through, wasn’t thought out, and was a mistake.”

First unveiled in chancellor Rachel Reeves’s Budget, the plans to impose inheritance tax on farms worth more than £1m have sparked fury among rural communities, who have contested the government’s assertion that small family farms will not be impacted by the changes.

National Farmers’ Union president Tom Bradshaw said an estimated 75 per cent of commercial farm businesses “were caught in the eye of this storm” of a policy which will “rip the heart of family farms”.

Northern Ireland MPs plead with ministers to rethink farming tax plans

Northern Ireland’s MPs and peers have united in a plea to the government to rethink planned changes to inheritance tax for farmers.

In a letter to Chancellor Rachel Reeves, DUP MP Carla Lockhart warned it could threaten the generational transfer of farms, disrupt rural communities and undermine the long-term security of the agricultural sector.

The Stormont Department of Agriculture, Environment and Rural Affairs has estimated that around a third of farms in Northern Ireland will be affected.

It comes as farmers plan to take part in an Ulster Farmers’ Union rally in Lisburn, Co Antrim, on Monday evening.

PA19 November 2024 03:00

No 10 refuses to be drawn after Elon Musk claims government ‘going full Stalin’ on farming tax

Downing Street has refused to be drawn into a row with Elon Musk, after the tech billionaire described the government as “going full Stalin” in its approach to farmers.

Asked for a response to Mr Musk’s criticisms, Downing Street said it would not “get into a back and forth on individual comments”.

A No 10 spokesperson said: “The responses I gave this morning continue to be the case: that we will continue to engage with the industry and explain how the process works, and it remains the case that we expect the vast majority to be unaffected by the changes.”

They would not be drawn into saying whether the government rejected Mr Musk’s premise, saying: “The prime minister’s own words are very clear in terms of the support that we have for farmers and their importance, and we will continue to communicate how the scheme works to provide that reassurance.”

Andy Gregory19 November 2024 02:00

Why do farmers say the changes are a problem?

According to the NFU, while farms may have a high nominal asset value – the value of their land and business assets – the returns from farming are often very low, so farming families may not have the reserves to pay for inheritance tax liabilities without selling off assets.

The NFU’s president Tom Bradshaw said the change had left elderly farmers in the “cruellest predicament”, as they may not live for another seven years to take advantage of exemptions for gifting assets, or to hand over assets in a way that qualifies for the gifting exemption.

He has also warned the changes could undermine investment as farmers will be wary of increasing the balance sheet as they will be liable to pay inheritance tax on it.

There are also concerns that it could affect tenant farmers if landowners no longer benefit from having a tax exemption for farmed land.

Mr Bradshaw said there was a feeling among farmers that the government did not understand food production.

PA18 November 2024 17:31

Watch: Farmer predicts serious food shortages

Farmer predicts serious food shortages: 'I won't be selling any beef or lamb this week'
Andy Gregory18 November 2024 16:30

How many farmers will be affected by the inheritance tax changes?

Labour says three-quarters of estates will not be affected by the upcoming changes, but campaigners have taken issue with this, reports my colleague Albert Toth.

According to Treasury analysis, around 500 estates will be impacted by the changes, with just the top 7 per cent of claims accounting for 40 per cent of the total value of the relief fund.

A release from the department adds: “It is not fair for a very small number of claimants each year to claim such a significant amount of relief, when this money could better be used to fund our public services.”

However, the Country Land and Business Association has said it is closer to 70,000 farms that will be affected. The new measure will mean “damaging family businesses and destabilising food security,” they add.

Economists have said this figure is slightly misleading. The 70,000 number does not reflect how many estates will have to pay inheritance tax each year, but rather how many are could be valued at over £1m today.

Paul Johnson, director of the Institute for Fiscal Studies (IFS) says: “The changes will affect a remarkably small number of some of the most valuable farms.”

Andy Gregory18 November 2024 16:29

Why are farm owners demonstrating over inheritance tax?

From April 2026, landowners who inherit agricultural assets worth more than £1m will have to pay 20 per cent inheritance tax (IHT) on them. These assets were previously entirely exempt from the tax under the agricultural property relief law.

Under the new rules, the 20 per cent levy – which is half of the standard 40 per cent rate – will be charged on assets above the £1 million threshold only. Also unlike regular IHT, the levy can be paid in interest-free instalments over a ten-year period.

The exemption is stacked with other IHT relief measures. Inheritance tax is already not paid if the value of the estate being passed on is worth under £325,000, plus £175,000 for a home under certain conditions.

For a farm owned by two people, this means the effective tax-free amount passed on is £3m when combining both their allowances plus each getting the £1m agricultural relief.

My colleague Albert Toth has more details here:

Farmers’ protest: Why are farm owners demonstrating over inheritance tax?

Tens of thousands of farm owners expected to hold major demonstration in London on Tuesday

Andy Gregory18 November 2024 15:58

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