Further farm IHT changes ruled out by Reynolds

Defra secretary Emma Reynolds has ruled out any further government amendments to its controversial farm inheritance tax (IHT) reforms, telling farmers and industry bodies the policy is now settled.

Speaking during a question-and-answer session at the Oxford Farming Conference, Ms Reynolds was asked by Farmers Weekly editor Andrew Meredith whether organisations such as the Country Land and Business Association (CLA) were wasting their time lobbying for further changes.

“That’s it!” she replied.

See also: Relief for farmers as IHT threshold rises to £2.5m

In a press briefing afterwards, Ms Reynolds said Defra had “listened carefully” to concerns raised by farmers and pointed to changes announced before Christmas.

“Just before Christmas, I announced that we are making significant changes to the threshold, a significant increase from £1m to £2.5m, which combined for a couple now takes you to £5m combined, and then there’s the nil rate band which takes you to £5.65m.”

© MAG/Philip Case

No additional tax

She said the changes mean 85% of those affected by agricultural and business property relief would pay no additional inheritance tax.

“We always said that the objective of the policy was to ensure that the largest estates paid inheritance tax… that’s at half the amount, 20%, most of us pay.”

Ms Reynolds also defended the policy’s intent. “We always said the objective of the policy is to raise inheritance tax from the largest estates – and that’s what the policy delivers,” she said, adding: “I’m really proud that as a government, we have listened. That shows strength, not weakness.”

Henry Graham © MAG/Philip Case

Speech disrupted

Her earlier speech was disrupted by tractor air horns from around 60 protesting farmers outside the venue. Ms Reynolds said constructive engagement, rather than protests, had influenced policy changes.

Among the protesters was Henry Graham, a farmer based in Newbury, Berkshire, who said: “The government thought that changing the threshold would make farmers go away, but they were wrong.”

He added: “This isn’t enough. We want to make sure every farmer is on the same playing field.”

Others warned anger extended beyond IHT to issues such as the pickup tax, fertiliser tax, supply chain fairness and dwindling farm support.

Meanwhile, the NFU has confirmed it is ending its Stop The Family Farm Tax public campaign following the threshold changes.

NFU president Tom Bradshaw said the government concession had been “a huge relief for many farming families”, while stressing the union remained opposed to the tax in principle and would continue to push for further changes politically.