Environment Secretary: Farmers are ‘wrong’ about inheritance tax
The Environment Secretary has addressed the concerns of farmers rallying in Westminster, asserting that their objections to the revised inheritance tax may be misguided.
During a session with the Environment, Food and Rural Affairs Committee, Steve Reed was confronted with claims from MPs that more than 500 farmers believe they will be impacted by the changes. He was asked if their concerns were unfounded.
Reed responded, stating, “Based on projections from HMRC, corroborated by the OBR and IFS, many farmers, perhaps fortunately, are mistaken. There are strategies available to them, similar to other businesses or asset owners, to manage their tax liabilities effectively.”
He expressed concern over the alarm caused by exaggerated figures, saying, “The figures being circulated are substantial and potentially alarming if taken at face value.”
Reed clarified that critics are misinterpreting Defra data by directly linking farm valuations to inheritance tax liabilities, highlighting the complexity of ownership structures beyond the “one person, one farm” scenario.
He concluded by affirming, “We are committed to supporting the continuation of family farming, as it has always been.”
