Cambridgeshire farmer fears 'far-reaching impact' from tax change
Tom Martin has brought a legal challenge to the High Court
A farmer near Peterborough believes changes to inheritance tax could put his livelihood at risk.
Tom Martin has been campaigning at the High Court in London, alongside his father George and the campaign group Farmers and Businesses for Fair Tax Relief against the proposed move.
"If this comes in, our farm will be sold and broken up," Tom said.
"That will affect me, everyone who works with me, my family, the local community and I think it will affect the wildlife and environment on the farm."
High Court battle
Tom - mainly an arable and livestock farmer - has attended a two-day hearing at the Royal Courts of Justice, which heard if Chancellor Rachel Reeves should have better consulted farmers before making changes to agriculture property relief and business property relief.
In December last year, the Government announced that farmers would only be taxed on assets valued from £2.5 million, rather than £1m following months of protests.
From next month, landowners would have to pay 20% per cent tax on assets worth more than £2.5m, payable in instalments over 10 years interest-free.
The Government said this would allow spouses or civil partners to pass on up to £5m in qualifying agricultural or business assets between them before paying inheritance tax, on top of existing allowances.
By 2030, the Government expects this move to raise around £300m.
Tom Bradshaw, president of the National Farmers' Union, said the announcement would be a “huge relief to many” and would “greatly” reduce the tax burden for many family farms.
While shadow foreign secretary Dame Priti Patel said farming families were living in “fear and distress”, and Labour “still fails to understand the importance” of rural communities.
Tax change could have 'far-reaching' impact
Tom - who's been in farming for 10 years - has previously told us how his business could be under threat if inheritance tax changes went ahead.
At the time, the Government set out measures to try and boost the agriculture sector, such as a 25-year farming roadmap to help improve resilience for farm businesses, and a £110m investment to support research and development of agri-technology.
"The effects of this lack of consultation is really far-reaching; I think unfortunately, we'll realise it's too late when things start to go wrong as a result of it," Tom said.
"Any Government that promises to ask the people who their legislation is going to impact, then doesn't before it brings in major reforms, is not doing its job; we need to hold them accountable."
An outcome from the hearing is expected in the coming months.