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taxes on farmland has drawn strong
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opposition from thousands of farmers but
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now MPs on an influential committee
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which includes Labour members are also
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pushing back against plans made by
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Rachel Reeves the Environment Food and
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Rural Affairs Committee in Parliament
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has published a report claiming there
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was a considerable risk that the end of
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a long-standing inheritance tax
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exemption will inflict damage on some of
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Britain's most vulnerable farmers
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committee Chair Alistister Carmichael
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who's also a Liberal Democrat MP told
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City the proposals will present a
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serious threat to Britain's rural
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communities he said the government could
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have opened a consultation drawn up an
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impact assessment or followed precedent
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in consulting with farmers themselves
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the government has chosen not to do so
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it argued at the last budget in October
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that the exemption known as the
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agricultural property relief was being
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exploited by wealthy investors who
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bought farmland to avoid paying
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inheritance tax under the plans which
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are currently say to come into force in
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April next year the government will
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restrict the full relief from
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inheritance tax on land owners to the
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first a million pounds after that 1
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million pound quotota there will be a
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tax of 20% when it is passed on to the
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next generation this tax change which
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was brought in to help Rachel Reeves
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fill what she described as a 22 billion
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pound black hole in public finances
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evoked a furious backlash if you live in
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London and have passed by Westminster in
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the last few months you may have seen
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tractors and farmers lined up for
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protests workers across the country
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described the change as a family farm
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tax the leading industry group the
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National Farmers Union accused the
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Treasury of underestimating the number
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of estates affected by the change and
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the quantity of families that could be
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hit hard while many including MPs on the
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environment committee recognize a tax
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exemption was used by millionaires to
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shelter wealth ministers have been
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accused of showing a disregard for
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vulnerable farming groups in fact the
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committee's new report which was signed
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off by four Labour politicians was
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scathing in its criticism and said
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ministers should provide farms with a
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vision and delay reforms to the tax tory
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MP and shadow environment secretary
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Victoria Atkins said Labour's tax change
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was cruel and claimed farms were on the
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brink of collapse due to the
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government's policies a spokesperson for
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the Department for Environment Food and
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Rural Affairs said reforms to the tax
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exemption were vital to fix the public
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services which we all rely on it claimed
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threearters of estates will continue to
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pay no inheritance tax at all while the
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remaining quarter will pay half the
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inheritance tax that most people pay and
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so the Labor government so far shows no
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signs of budging on its multi-billion
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pound tax hike for more news on taxes
3:01
head over to cityam.com
