Rachel Reeves should give him water Family fields raided by hereditary To protect workers, according to a think tank which made the controversial champion Labor Policy.
Center for the Analysis of Taxation (Centax), which has been roughly supporter The idea of a so -called ‘tractor tax’, Warned that the landowner was less likely to be affected by improvement than working. Farmers,
This step will increase pressure Chancellor On his plans, critics say that may sound like death For many families Fields,
Changes means that fields priced at £ 1m or more will be responsible for 20 percent inheritance tax,
Treasury says, with tax allowance, really only £ 3m value farms will be affected – about 28 percent of the family fields.
But the official Defra figures suggest that more than 66 percent can be a hit.
The ministers have defended the changes, saying that they had to take “difficult decisions” Labor It is said that the last Tory was £ 22bn black hole in the public finance left by the government.
However, St.ax has now said that working farmers are more likely to suffer under policy, despite the claim of safety of labor working people.
It suggested that policy can be better targeted in two ways, including capping inheritance tax The first £ 10m of the claim to allow 100 percent relief to relief to £ 2m per property.
It also suggested the “minimum share rule”, which for inheriting tax relief for passive investors in the farm, so they cannot be used as “tax shelters”.
Last year, Minister Daniel Zicner told the MPs that the government has introduced plans to protect small fares.
He said: “Currently, small farms can face the same levels of tax bills themselves, which despite having very low assets. In the form of very large farms. Twenty percent of agricultural property relief is claimed 2 percent; 40 percent of the top 7 percent is claimed.
“This is not appropriate, it is not durable, and sadly, it has been used in some cases to avoid inheriting tax by rich landlords. That is why the government has announced a plan to improve agricultural property relief.”
St.x found that only 20 percent of the zamindars would collide with the estates, while 25 percent of the tenant farmers, compared to the farmers estates, 45 per cent of the owner-firor estates and 67 per cent mixed tenure estate.
St.sx said: “Bhuswamis are less likely to be affected by improvement compared to farmers working, which represent 64 percent of all agricultural assets, but 42 percent of the affected form estates. Owners represent 17 percent of all farm estates, but 37 percent of the affected form estates.”
Mo Matkalf-Fisher from the alliance of rural areas said: “Labor Minister repeatedly states that they want to protect real family farming businesses, while while avoiding tax, to avoid tax, through tax change.
“The evidence, however, indicates that it is in the form of these families and their fields that will be badly affected by the policy, as it stands.
“It is time for experts in the agriculture sector to hear and reconsider the policy before it is too late.”
According to the National Institute of Economic and Social Research, Ms. Reeves is currently under pressure to find a £ 50BN hole in the government’s finance.