The inquiry follows many months of persistent NFU calls for an impact assessment on the family farm tax. It will be carried out by the Finance Bill Sub-Committee and will examine two provisions within the draft Bill:
- Reforming inheritance tax: unused pension funds and death benefits.
- Reforms to each of agricultural property relief and business property relief.
While it is not a formal consultation, the committee will look to gather evidence to produce a report which will outline its recommendations and could help inform debate among MPs when the Finance Bill – which sets out the draft legislation for the family farm tax – passes through the House of Commons later this year. The Finance Bill does go to the Lords, but the Lords historically do not amend Finance Bills.
NFU response
The inquiry is seeking written evidence in response to a number of questions covering technical aspects of the government's proposals by 5pm 7 October. The committee cannot consider the rates or incidence of tax, but it can examine issues of tax administration, clarification, and simplification.
The NFU will be responding, highlighting our deep concerns around the consequences of implementing the family farm tax and the devasting impact this will have on family farms.
The news of the inquiry follows a new report from tax experts CenTax (Centre for the Analysis of Taxation) who agreed the policy needed changes in order to deliver the government's intentions, and proposed a number of amendments.
The Office for Budget Responsibility and the Efra Committee have also flagged the harm this policy could cause – especially to elderly, vulnerable farmers.
How to respond
The inquiry is a public Call for Evidence, and the committee is interested in hearing from taxpayers, their advisers, relevant organisations and any other interested parties.
Read about the inquiry and how to respond at: Parliament.UK | Call for Evidence.
