Starmer quizzed by DX reporter over inheritance tax for farmers
Squirming Sir Keir Starmer dodged questions over a senior minister advising farmers to seek tax advice to avoid huge bills.
The Daily Express challenged the Prime Minister over rural affairs minister Daniel Zeichner claiming that “with a bit of planning, no inheritance tax will be payable at all”.
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Sir Keir insisted the Government was supporting British farmers, despite warnings that 70,000 farms could be hit by the changes announced by Chancellor Rachel Reeves.
He told the Daily Express: "How farmers arrange their affairs within their families is obviously a matter for them."
Sir Keir Starmer was asked about claims farmers could avoid inheritance tax (Image: Getty)
Sir Keir Starmer held a press conference after the G20 Summit in Brazil (Image: Getty)
Rural affairs minister Daniel Zeichner earlier suggested farmers could avoid paying inheritance tax, telling John Pienaar on Times Radio he said: “Tens of thousands of family farms across the country will not be affected by this and of course, with a bit of planning, no inheritance tax will be payable at all.
“We're absolutely determined to protect the family farms. But what we have been seeing is people coming in, buying up land for purposes of tax avoidance.
“And we just don't think that's the right thing for the future of the farming sector or the right thing in general for the public.
“Everyone else has to pay inheritance tax. And we think we should clamp down on this tax avoidance.”
The Country Land and Business Association (CLA) estimates that 70,000 farms - all those of 50 hectares or more, with a value of more than £1 million - will be affected by the inheritance tax change over time, around a third of the UK total.
CLA president Victoria Vyvyan said: "Protesters have every right to be angry; the Government has lied about the impact on their livelihoods.
"Ministers claim the inheritance tax cap hits only the rich, but it could put 70,000 farms - big and small - at risk. All will be questioning their future, and whether they'll have one to pass on.
"Farmers shouldn't need to be marching to London; ministers should be marching to them.
"They need to understand the real damage and fix it before they destroy confidence in the rural economy."
Financial and legal experts have reported seeing an increase in farmers seeking advice and support over the shake-up in inheritance tax.
Some farmers have expressed concerns that younger generations may need to sell land or buildings to pay tax bills, leading to farms that have been owned by the same family over many years being broken up, firms reported.
Experts also suggested that younger generations may end up receiving farming assets sooner - within their parents' lifetime - as families plan for the changes.
Thousands of farmers marched on Westminster on Tuesday in protest against the Budget changes, which include inheritance tax changes for farming businesses, limiting the existing 100% relief for farms to only the first £1 million of combined agricultural and business property.
Wealth management group Evelyn Partners said it has seen an uptick in inquiries from farmers seeking advice after the changes were announced.
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Jason Hollands, managing director of Evelyn Partners, said: "Changes in the Budget as to how certain assets are treated for inheritance tax have been a major source of concern for both existing and potential clients, especially in relation to the treatment of pensions, but also for business owners and farmers, too, due to the capping of reliefs.
"The measures announced by Rachel Reeves have upended many people's financial plans and therefore since the Budget we have been very busy helping people understand the implications of these measures and explore their options.
"Restrictions on agricultural property relief are particularly challenging for family-owned farms, as while the value of the assets in terms of land and equipment are superficially high, income from farming is not, leaving their families with the prospect of meeting very high tax bills when they die with limited resources to meet the costs other than by selling off land and breaking up farms that, in many cases, have been in the same families for generations."
Sir Keir Starmer also refused to say whether TV presenter Jeremy Clarkson had spread misinformation by claiming 96% of farmers will be affected by inheritance tax changes.
"I'm not going to get into the business of commenting on what Jeremy Clarkson says," the Prime Minister told a press conference when asked if the TV presenter had spread misinformation.
"I think the facts speak for themselves.
"As I've said on a number of occasions, for a typical family wanting to pass on through the family which is... completely understood, then with all the allowances in place, if they pass onto a child it's a £3 million threshold.
"All of you can check out what that means in terms of the impact, I think the BBC has already done it.
"But it means that the vast majority of farms are unaffected by this."
Tory leader Kemi Badenoch has warned Labour’s “cruel” tax on farmers will destroy farming in Britain for future generations.
Mrs Badenoch said there will be no next generation for the industry after Rachel Reeves' Budget inheritance tax grab.
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Ms Badenoch’s stark warning came as she joined 10,000 farmers and celebrities Jeremy Clarkson, Kaleb Cooper and Andrew Lloyd Webber who descended on Whitehall angered by the changes that would see a 20 per cent levy slapped on holdings valued above £1million.
Clarkson, star of Amazon Prime’s hit show Clarkson’s Farm said "it's the end" for farmers, as he called for the government to reverse the “Tractor Tax”.
The former Top Gear presenter said the change to inheritance tax was "a very rushed last-minute decision", adding: "I think we all make mistakes in life, and I think it's time for them to say 'you know what, we've cocked this one up a bit' and back down.”