Agricultural Property Relief

Adrian Ramsay Excerpts

Tuesday 28th January 2025 Westminster Hall

[Adrian Ramsay (Waveney Valley) (Green)]

Diolch yn fawr—thank you—to the hon. Member for giving way. Farmers in my constituency say to me that their problem is the threshold. The on-paper values of their farms—often several million pounds, even if the farmer makes no actual surplus income from the farm—would take them well into being caught by this policy. But the current situation is not working either, because non-farmers bought up more than half the farms and estates sold on the open market in England in 2023.

One local farmer told me that a 350-acre farm in Suffolk was bought by a merchant banker from London who had not even seen the farm and was clearly not intent on farming. Does the hon. Member agree that although we need the Government to increase the threshold, those arguing for the status quo are not doing farmers justice either?

[Ann Davies]

Absolutely. I am coming to my solutions, so I hope the Treasury will listen. I have three solutions that I think would work, because there are alternatives to this policy. The first is that abolishing capital business asset rollover relief could have provided a more targeted measure to tackle wealthy individuals buying agricultural land to avoid tax. That is the big one.

Secondly, taxing assets at the point of selling, rather than at the point of passing to another generation, would be a fairer measure to keep family farms. Thirdly, modifying existing proposals could double the zero-rate band and significantly increase the threshold, while allowing a shorter period than seven years for potentially exempt transfers. I have an additional comment on that. Do any of us have the right to live for seven years? That, my friends, is really not within our gift. Those are a few solutions from expert organisations in the sector, which could have proposed their solutions before the Government made their decision. That underlines again the importance of proper consultation with stakeholders.

To sum up, the APR and BPR changes have come at an already difficult time for farmers, with high costs of production, adverse weather and marketplace volatility taking their toll. Working farms that have been at the heart of Welsh communities for generations will suffer. As a constituent told me,

“Every farmer deserves the right to security of the farm they own or rent.”

Farms are not businesses but family legacies, vital for our rural economy and key to preserving our Welsh-speaking culture. Plaid Cymru supports closing loopholes that allow billionaire landowners to avoid paying their fair share, but this one-size-fits-all approach ignores the unique challenges of Welsh farming. That is why it is so important that the UK Government implement a Wales-specific impact assessment that reflects the realities of agriculture in Wales.

A petition calling for the UK Government not to change inheritance tax relief for working farms has reached more than 146,000 signatories, and is being debated here on 10 February—put that in the diary, folks! It is clear that the public agree that it is time for the Government to listen to farmers, conduct a proper analysis and rethink this damaging policy before it is too late.