Welsh Government Pressed on Impact of New Family Farms Tax

The Welsh Government have been urged to clarify how many farms in Wales will be affected by the Family Farm Tax.

The calls come after farming unions rebuked claims from the UK Labour Government and Welsh Secretary Jo Stevens that only a minority of farmers will be affected by the new inheritance tax rules.

The UK Labour Government has come under heavy criticism following the announcement by Chancellor Rachel Reeves that farmers would have to pay a 20% tax on farms worth more than £1m.

When questioned on Sunday Politics about the potential impact of the new tax laws on Welsh Farmers, Welsh Secretary Jo Stevens claimed that “Three quarters of farmers will be unaffected”.

The treasury has yet to publish an estimate around the impact that the new tax laws will have on Welsh farms.

Both the FUW and NFU Cymru have expressed their concerns at the changes made by the UK Government, stating that it will cause “lasting damage to Welsh farming.”

The Welsh Lib Dems have now called on the Welsh Government to clarify how many farms in Wales will be impacted by the new Family Farm Tax rules.

Party leader Jane Dodds MS has written to the Cabinet Secretary for Climate Change and Rural Affairs Huw Irranca-Davies to express her concern over the “untold damage that farming communities throughout Wales will face as a consequence of the UK Government’s most recent budget”.

In the same letter, Jane Dodds MS pressed Mr Irranca-Davies to confirm how many Welsh farms will be affected by the new inheritance laws.

“We cannot afford to leave our farming communities in the dark when it comes to the impact of this potentially devasting new tax law” said Jane Dodds MS.

Both our farmers and the Welsh Public deserve to know the truth that lies behind Labour’s claims that only a small amount of farmers will be impacted by the Family Farm Tax. Claims that, I should add, have already been disputed by both NFU Cymru and the FUW.

The uncertainty surrounding these new inheritance laws will place more unnecessary pressure on farmers across Wales, many of whom are already struggling under a cloud of financial pressures.”