EFRA Chair writes to PM on inheritance tax reforms

Correspondence: Letter from the EFRA Chair to the PM on IHT reforms 

The Chair of the Environment, Food and Rural Affairs Committee, Alistair Carmichael MP, has today written to the Prime Minister, following his appearance before the Liaison Committee on 19 December. 

In the session in December, the Chair questioned the PM on the aim of the reforms to agricultural property relief (APR) and business property relief (BPR).  

In his letter today the Chair comments that the PM's response, that the purpose of the reforms was to raise revenue in the Budget and that they were not aimed at a particular group, is in contrast with the rationale for the changes set out to the Committee by the Secretary of State and Treasury officials. 

Alistair Carmichael also raises the disputed question of how many farms will be affected by the changes to APR and BPR and asks for clarification on the figures used by the Treasury to predict the number of farms that will be affected.  

He states that the EFRA Committee has heard evidence that many more farms may be affected than the Treasury's estimate of 500 farms. 

The Chair asks the PM to meet with him as a matter of urgency to discuss potential mitigations to the changes and emphasises “the strength of feeling on this matter amongst farmers and stakeholders”. 

The letter also raises the issue of the Government's technical consultation on IHT reforms and backs the call from farming unions for the scope of the consultation to be broadened. 

The Chair highlights that an expansion could allow the full impact of the changes on family farms and food production to be better assessed. 

ENDS

Further information

• The EFRA Committee yesterday wrote to the Defra Secretary on the strategy required to improve confidence for the farming sector. This letter can be viewed here.