Gabrielle Wilde
Guest Reporter
Rachel Reeves has firmly stood by her decision to raise Inheritance tax in a GB News interview where she claimed that farmers have been given a "fair deal."
Labour's Budget last month announced significant changes to inheritance tax relief for family farms.
The 100 per cent relief currently enjoyed by farming families will be limited to only the first £1million of combined agricultural and business property.
For assets above this threshold, landowners will face a 20 per cent tax rate, rather than the standard 40 per cent rate of inheritance tax applied to other land and property.
Speaking to GB News, the Chancellor said: "This government had to make a number of difficult decisions in the Budget last month to put our public finances back on a firm footing, difficult decisions on spending, on welfare and on tax.
"I would just say this, around agricultural property relief. If you're a couple who own a farm, including a home on the farm, you can pass on £3m tax free to the next generation.
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"Beyond that, £3m, you are taxed at half of the rate that everybody else is taxed for inheritance tax at 20 per cent, compared to 40 per cent.
"Where there is an inheritance tax bill, you can pay that over 10 years interest free in a way that no one else paying inheritance tax can.
"So I think this is a fair deal for farmers, whilst also ensuring that we bring in the money to get our public finances back on a firm footing."
The National Farmers' Union has disputed the government's claims about the impact, warning that combining allowances for both IHT relief and business property relief could leave far more agricultural businesses exposed to the tax.
The farming community's opposition is set to reach Westminster next week, with an unprecedented 1,800 farmers planning to gather for a mass protest - triple the originally expected numbers.
The NFU-organised rally aims to send a clear message that family farms and rural communities "stand united against the Government's catastrophic Budget."
Protestors have been asked to wear their boots and wellies as a symbol of working people, with children leading a procession to Parliament Square on toy tractors.
The demonstration will feature speeches from farming leaders, including NFU president Tom Bradshaw, who has called for the tax to be scrapped entirely.
The controversy has been further inflamed by Welsh First Minister Eluned Morgan's comments calling for farmers to "calm down a bit" over the inheritance tax changes.
Her remarks sparked immediate backlash from critics and campaigning groups.
Welsh Tory leader Andrew RT Davies said he was "lost for words" and accused Morgan of being "completely out of touch with reality."
Find Out More...
Labour's Budget last month announced significant changes to inheritance tax relief for family farms.
The 100 per cent relief currently enjoyed by farming families will be limited to only the first £1million of combined agricultural and business property.
For assets above this threshold, landowners will face a 20 per cent tax rate, rather than the standard 40 per cent rate of inheritance tax applied to other land and property.
Speaking to GB News, the Chancellor said: "This government had to make a number of difficult decisions in the Budget last month to put our public finances back on a firm footing, difficult decisions on spending, on welfare and on tax.
"I would just say this, around agricultural property relief. If you're a couple who own a farm, including a home on the farm, you can pass on £3m tax free to the next generation.
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"Beyond that, £3m, you are taxed at half of the rate that everybody else is taxed for inheritance tax at 20 per cent, compared to 40 per cent.
"Where there is an inheritance tax bill, you can pay that over 10 years interest free in a way that no one else paying inheritance tax can.
"So I think this is a fair deal for farmers, whilst also ensuring that we bring in the money to get our public finances back on a firm footing."
The National Farmers' Union has disputed the government's claims about the impact, warning that combining allowances for both IHT relief and business property relief could leave far more agricultural businesses exposed to the tax.
The farming community's opposition is set to reach Westminster next week, with an unprecedented 1,800 farmers planning to gather for a mass protest - triple the originally expected numbers.
The NFU-organised rally aims to send a clear message that family farms and rural communities "stand united against the Government's catastrophic Budget."
Protestors have been asked to wear their boots and wellies as a symbol of working people, with children leading a procession to Parliament Square on toy tractors.
The demonstration will feature speeches from farming leaders, including NFU president Tom Bradshaw, who has called for the tax to be scrapped entirely.
The controversy has been further inflamed by Welsh First Minister Eluned Morgan's comments calling for farmers to "calm down a bit" over the inheritance tax changes.
Her remarks sparked immediate backlash from critics and campaigning groups.
Welsh Tory leader Andrew RT Davies said he was "lost for words" and accused Morgan of being "completely out of touch with reality."
Find Out More...