Write to your MP about the CLA’s inheritance tax clawback proposal
The CLA urges members to help put pressure on the Treasury to consider our clawback proposal as part of our campaign against inheritance tax changes
The CLA is calling on members to write to their local MP urging them to put pressure on the Treasury to consider our clawback proposal and get the Chancellor to meet with rural economy representatives.
After our clawback proposal fell on deaf ears with Treasury officials, we want you – our members – to put pressure on your MP to advocate for the rural economy and make the case directly to Chancellor Rachel Reeves.
Earlier this month, the CLA joined other rural organisations in a meeting with Treasury Minister James Murray proposing a clawback mechanism, where tax would apply at the full 40% rate on inherited assets sold within a certain time period post-death if the proceeds are not reinvested into those continuing businesses.
The CLA is committed to fighting the changes to agricultural property relief and business property relief and is calling on the collective effort of members to amplify our calls and get the Chancellor round the table to discuss the proposal.
Letter template to your MP
I note that the Treasury continues to dismiss the deep anger of farming and other family businesses following the Chancellor’s proposed changes to Agricultural Property Relief and Business Property Relief.
These reliefs are designed to ensure multi-generational business can survive. Government’s reforms will have a devastating impact on the economy, with research from CBI Economics estimating that 125,000 jobs will be lost. We know also that many businesses are cancelling planned investment. This means that the Exchequer will likely receive less, not more, tax revenue.
Given the damage being done to major industries, it is disheartening that the Chancellor herself has been entirely absent from the discussion.
A coalition of industry bodies including the Country Land and Business Association (CLA) have provided a sensible alternative proposal in the form of a “clawback” where the tax would apply at the full 40% rate on inherited assets sold within a certain time period post-death, where the proceeds are not reinvested into those continuing businesses. This proposal would be a lifeline for my business.
This proposal was dismissed by the Treasury without proper evaluation, despite having the potential to generate a similar amount of revenue as the government’s proposed changes.
As my MP, I would ask that you write to the Chancellor to put forward the clawback proposal, and to push for the Treasury to come back round the table with representatives from the rural economy.