Suffolk farmers doubt Budget will ease inheritance tax burden

Summarised from 2 outlets · Updated 27 Oct, 13:32 · Archive

Suffolk farmers remain sceptical that the Budget will bring relief from inheritance tax, despite previous concessions.

Farmers across Suffolk remain sceptical that the Budget will bring relief from inheritance tax, despite a previous partial climbdown by the former chancellor. Will Hitchcock, an eighth generation farmer from Ringshall near Stowmarket, said he held little hope that the new chancellor John Healey would address ongoing anxiety about the tax.

Rachel Reeves had raised Agricultural Property Relief and Business Property Relief thresholds from £1m to £2.5m following a backlash when inheritance tax reforms came into force in April this year. However, farmers argue they will still be caught by the tax.

Farmers say they are on paper asset-rich but cash-poor, surviving on fine margins. Hitchcock said 'there physically isn't the money in farming to pay the tax' and called for 'a complete reversal of the policy' to allow working farmers to pass their farms to the next generation. He supports closing a loophole that allows non-farmers to use farmland as a 'safe haven' for protecting their wealth. This season has been particularly difficult, with red diesel and other costs rising while crop yields fell by 20 to 25 per cent during heatwaves.

How it is being reported

• Suffolk farmers sceptical of possible inheritance tax concession ahead of BudgetFarmer Will Hitchcock of Ringshall, near Stowmarket, doesn't hold out a lot of hope that the new chancellor will address farm inheritance tax in the Budget.East Anglian Daily Times · 27 Oct, 13:00
• Suffolk farmers sceptical of possible inheritance tax concession ahead of BudgetFarmer Will Hitchcock of Ringshall, near Stowmarket, doesn't hold out a lot of hope that the new chancellor will address farm inheritance tax in the Budget.Ipswich Star · 27 Oct, 13:00

In this story: Will Hitchcock · Rachel Reeves · John Healey · Suffolk · Ringshall · Stowmarket

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