LABOUR leader Anas Sawar expressed his support for the changes to Inheritance Tax during last week’s visit.
Asked about it by this paper, with particular reference to the possible impact on farming, he said: “It’s really important that we cut through what I think has been a level of misinformation – and I don’t target that at the individuals, I target that at those that have an alternative agenda.
“What is being said in the Budget around the changes to Inheritance Tax as relates to farmers is there is still a relief of around £1.5 million before anyone has to pay any inheritance tax if it’s a single individual, for a couple it is £3 million, and when you do start paying it’s half the rate that everyone else has to pay at 20 per cent over ten years with no interest.
“And there is also £5 billion going into supporting farming communities over the next two years across the UK, so I think it has to be looked at in context and this is going to impact a smaller number of impact than what is being said.”
Mr Sawar also defended the Treasury’s estimates of how many will be affected, saying there was no reason to dispute those.
He continued: “I think to most reasonable people saying that £3m is tax exempt and then after that they are paying 20 per cent rather than other businesses paying 40 per cent and you get to pay it over ten years is a fairer system.
“Do I recognise that there are lots of farms that are asset rich but profit margin low? I accept that, but I think that there are probably very few farms that go well beyond the £3 million threshold.
“I think there’s again a disconnect, there are lots of people dotted about the country that will say there are massive amounts of money going into farming, which is the right thing to do, and this is a model that’s not available to other businesses and other family businesses in other sectors.”
He concluded with: “What I want to hear is if £3 million is the wrong threshold, then what is the right threshold?”
