OBR Report: Farm tax will penalise farmers for practically no benefit

EMBARGO: Immediate release

Commenting on the latest OBR report on the impact of agricultural and business property relief, Liberal Democrat Environment and Rural Affairs spokesperson Tim Farron MP said:

“This report confirms that the Government’s misguided family farm tax is mired in problems and will penalise British farmers for practically no benefit.

“It is deeply concerning that older farmers will be hit hardest from this tax, with the rug pulled from under them before they can change their plans. And with tax revenue expected to be highly uncertain and unstable for two decades, the Chancellor’s excuses simply don’t stack up.

“Farmers are absolutely vital for Britain, putting food on our tables and protecting the British countryside. And they are already battling botched trade deals, declining incomes and high energy prices. The Government must do the right thing and scrap the family farm tax before it’s too late.”

ENDS

Notes to Editor:

The report can be found here.

In short, the report shows that: 

There are upside and downside risks to the degree of attrition in the long term, and the yield from this measure is not likely to reach a steady state for at least 20 years.

Any increase in gift-giving will increase attrition and reduce receipts after at least a seven-year period, while the potential proliferation of new tax planning strategies will do likewise.

In the medium term, it is likely to be more difficult for some older individuals to quickly restructure their affairs in response to the measure meaning older farmers to be hit hardest.