MP voices farming concerns over possible inheritance tax changes

Potential changes in inheritance tax could impact on farmers and crofters – as well as the wider community.

That is the concern of isles MP Alistair Carmichael, who has spoken on the issue during a parliamentary debate.

The isles MP was speaking after it emerged changes were being considered in the upcoming budget.

He noted issues raised by the Tenant Farmers Association, and said that – while there might be a case for reform – any changes relating to farming risked wider consequences across rural communities.

Speaking in the debate, Mr Carmichael said:  “We have had a lot of speculation in the media in recent weeks about the possibility of changes coming in the budget very soon.

“Without the ability to have a proper debate involving the Treasury, change will inevitably come in a haphazard and chaotic way, and it will bring with it many unintended consequences that will have an effect on not just farmers but the wider rural community.

“There may be a case for reform, but this really is not the way to go about it.

“Farming is a capital-rich and revenue-poor industry. What affects farmers will affect vets, agricultural merchants, local shops and post offices in some of the most economically fragile communities to be found anywhere in the country.

“It is a cliché, but true, to say that farming underpins just about everything in rural communities and the rural economy, whether environmentally–through the way in which land is managed, which has consequences for nature–or financially.”

The Tenant Farmers Association had provided a briefing for the debate, which said that it is already seeing consequences among its members.