NFU plans banner campaign to drive home IHT message
© NFU The NFU is planning an extensive banner campaign, starting on 19 December, as part of a new three-pronged approach to resisting the government’s inheritance tax (IHT) plans.
Roadside banners will be put up across England, Wales, Scotland and Northern Ireland to keep the campaign in the public eye, while gate posters and thousands of car stickers will be made available for NFU members.
Materials will be distributed by regional offices from 16 December, with more available in January to purchase, at cost.
See also: Labour MPs squash opposition to ‘family farm tax’ plans
The second strand to the campaign is to encourage NFU members to set up meetings with their MPs, accountants and consultants to go through the figures, “so that MPs can see first-hand that the Treasury lines claiming few farms will be affected by the changes are wrong”.
The NFU suggests particular focus is put on Labour MPs who still support the changes to agricultural property relief (APR) and business property relief (BPR) proposed by the Treasury.
The third element of the “next steps” campaign is still to be revealed, though will involve a “moment” at the Lamma machinery show in January.
Intransigence
While the NFU admits that chancellor Rachel Reeves seems intransigent on the issue, it is encouraged by the huge public support farmers have received and believes this is beginning to cut through with Labour MPs.
“In the end, it is only a mix of public support and political pressure which will change this awful policy,” it said in a statement.
“Of course, other groups are also organising their own events, and this is a good thing. The more that people can do, the better.”
How farms must sell land to pay IHT
To help illustrate how a 20% IHT liability could impact farm businesses, the NFU has published calculations for five real family farms, prepared by accountants Armstrong Watson. They are now online.
One example shows how a partnership, with two elderly married parents running 100 beef cows and arable over 450 acres, with buildings, house, livestock and machinery might have assets valued at around £6m.
After allowing for available tax reliefs, the business would face an IHT charge of more than £1m.
Spread over 10 years, that still exceeds the £57,000 average annual profit achieved by the farm over the past five years. So land would have to be sold off.
The NFU says these examples can provide a template for other farmers to use.
“If you’re writing to your MP, you may find this information useful to help explain your individual situation,” it said.