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Labour's Proposed Tax Changes Threaten Future of UK Farms

Chancellor Rachel Reeves considers reforms to inheritance tax reliefs, sparking fears of financial strain on smaller farms.

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Sir James Dyson and the Duke of Westminster own their land through different vehicles, which could dramatically change their family tax bills

Overview

  • The proposed removal of Agricultural Property Relief (APR) could force many UK farmers to sell land to cover inheritance tax bills.
  • Wealthy landowners often use trusts to shield estates from taxes, leaving smaller farms more vulnerable to the proposed changes.
  • Critics argue that the reforms could disrupt food production and jeopardize the UK's food security.
  • The National Farmers Union warns that mishandling the policy could severely impact rural communities and farming businesses.
  • A significant increase in farmland sales has been observed as landowners anticipate potential tax changes.