Moray area MPs vote on inheritance tax for farmers as changes are backed
Changes to inheritance tax for farmers were backed in a vote yesterday, with opposition politicians branding the vote a “betrayal”.
The non-binding vote, organised by the Conservatives through an opposition day motion, stated that the House of Commons “regrets” the Labour government’s move to scrap farmland’s blanket exemption from inheritance tax.
After hours of debate in the chamber, the amendment was voted down by 338 to 181 with MPs split along party lines.
The changes would mean that farmland with a value of more than £1 million would be subject to inheritance tax, at 50 per cent of the normal rate.
Only the agricultural value of the land counts against this threshold and it does not include residential property.
As a result, in a case where two people are passing on assets to their children, the threshold could be up to £3 million.
Critics, however, claim that the new tax is unfairly punishing family farms with already razor-thin profit margins.
Moray MPs Graham Leadbitter and Seamus Logan, both SNP, backed the amendment.
Mr Logan, MP for Aberdeenshire North and Moray East, asked James Murray, a Labour minister in the treasury: “Does the Minister agree that in the Government’s haste to target tax avoiders such as Jeremy Clarkson and others, as has been mentioned, they have actually caught a lot of small and medium-sized farmers in their sights, in a completely irresponsible way?”
Mr Murray replied: “Although our policy should discourage the kind of tax planning to which I think the honourable gentleman refers, the policy is broader than that.
“It is necessary to balance significant relief from inheritance tax on family farms with the need to fix the public finances, and that is the balanced decision that we have taken with this policy.”
Scottish Conservative MP for Gordon and Buchan, Harriet Cross, also delivered a letter to the Chancellor signed by more than 100 MPs and farming organisations last month.
She said: “This is a dark day for the future of our farming industry across Scotland and the rest of the UK.
“The decision by Labour MPs not to stop the family farm tax risks losing a generation of farmers.
“Labour have abandoned the livelihoods of farmers, rural communities, employment opportunities and threatened our food security by pushing through this unfair policy.
“Their betrayal will punish genuine food-producing family farms who are already operating on paper thin margins.
“This will ultimately lead to food prices rising while farmers, who are already being hit by changes to National Insurance and fertiliser tax, will be forced to sell off parts of their land to pay huge tax bills.
“But the battle doesn’t stop here and together, with my Conservative colleagues, I will fight tooth and nail to ensure this cruel and unfair tax is halted.”
