"Labour wants to start charging tax on inherited agricultural assets worth more than 1m, reversing a tax relief that has existed in its modern form since the 1980s. Above this threshold, inherited farmland would be taxed at 20%, half the standard inheritance tax rate, in a move initially estimated to raise 520m annually by 2029."
"The plans, first announced at last year's Budget, led to protests around the UK from farmers who argue they will lead to the break-up of family farms. But ministers avoided a legislative skirmish over the proposals last year, as they were not included in the law to rubber-stamp the 2024 Budget."
"The Commons approved the move by 327 votes to 182 - but 86 Labour MPs did not take part, a higher number than for similar Budget votes. One MP in the Labour Rural Research Group, an internal pressure group for the party's countryside MPs, told the BBC they believed around 30 Labour backbenchers had actively chosen to abstain."
Labour plans to tax inherited agricultural assets worth more than £1 million, reversing a long-standing relief. Above this threshold, inherited farmland would be taxed at 20%, half the standard inheritance tax rate, and is initially estimated to raise £520 million annually by 2029. The proposal prompted protests from farmers who warn it could force family farms to be broken up. Ministers defended the measure as a fair way to raise money for public services. Dozens of Labour backbenchers abstained during an initial Commons vote, with some voting against and the NFU urging abstentions.
Read at www.bbc.com
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