Agricultural Property Relief and Business Property Relief
Debate between Dan Tomlinson and Douglas McAllister(1 week, 1 day ago)
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Dan Tomlinson
We will not be scrapping this tax completely. We have tabled an amendment that the House will have the chance to debate next week in Committee of the whole House on the Finance Bill. We think that the proposals that we plan to implement will raise £300 million in a fair way and protect smaller family farms.
Douglas McAllister (West Dunbartonshire) (Lab)
Last month, I visited Portnellan farm in my West Dunbartonshire constituency. I received a very warm and courteous welcome from husband and wife farmers David and Freda and their son Chris. The Scott-Parks run their family farm and were keen for me to hear and see at first hand the challenges that they face in ensuring that the next generation can continue to farm at Portnellan. I listened to their request that we review the original proposals. Does the Minister agree that 85% of all farming estates will now be protected from inheritance tax but, importantly, that we will maintain the original principle that tax avoiders should not use land to avoid tax at the expense of hard-working family farmers such as the Scott-Parks?
Dan Tomlinson
My hon. Friend makes an important point. If someone has agricultural or business assets worth £2.5 million, for example, they will now pay £300,000 less in inheritance tax than they would otherwise have paid; if they are worth £5 million, they will pay £600,000 less than they would have paid before the changes that we announced last month. The challenge of the proposals from the Opposition parties is that they would provide a £1 million tax cut to an estate worth £10 million. Their priority is clearly giving the very largest estates in this country tax cuts worth millions or even tens of millions, rather than using revenue in a fair way to fund our public services.