British farmers protest against inheritance tax
The Labour government in the UK has announced plans to abolish the exemption of farms from paying inheritance tax on their land. The new rule would apply to all those whose farm is worth more than one million pounds (around 1.2 million euros) and aims to plug a tax loophole. Farmers are protesting against the tax, arguing that it will mean the end for their farms. The press weighs up arguments on both sides.
Rich landowners must do their bit
The new tax rules go in the right direction, says The Guardian:
“There was no good reason why agricultural businesses should continue to be untaxed. On the contrary, the increasing use of land as a way for wealthy people to avoid taxes needed to be addressed. ... The fact is that the main beneficiaries of the existing regime are a highly privileged group. Between 2018 and 2020, nearly £600m in inheritance tax relief went to about 200 estates with an average value of £6m. Each claimed more than £1m in relief. Even once the changes are brought in, agricultural land will be taxed at 20% - half the rate of other assets.”
Threat to an entire sector
Labour should take the farmers' fears seriously, The Times counters:
“Agriculture is a small part, at less than 1 per cent, of the overall UK economy but it provides around half of the food British households consume and employs almost half a million people. And it is struggling. A cluster of factors are forcing rapid adaptation. These include climate change, a reduction in subsidies and competitive pressures arising from Brexit. To manage a farm typically involves constant insecurity due to pressure on margins. In this context, changes in inheritance tax are a potent threat to farming.”