ITV interview with Vice Chair Polisi Cymru
This week, Vice Chair of Polisi Cymru Thomas Homfray spoke to ITV Wales about how the recent APR and BPR relief changes from the budget will affect our Welsh members.
ITV Interview
Following the budget this week, our team worked with ITV Cymru Wales today on an interview with CLA Cymru's Polisi Cymru Vice Chair, Tom Homfray. Addressing the UK Government's proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), the interview was one of the first to challenge Westminsters figures, used to support their last minute u-turn on APR and BPR.
The changes, suggest that farms valued over £1 million will be subject to inheritance tax, with 100% relief applicable only to the first £1 million of combined agricultural and business assets.
Showing the ITV journalist Gwennan Campbell around his multi generational farm and award winning Farm Shop Forage in the Vale of Glamorgan, Tom Homfray expressed significant concern over these proposals, stating that many family farms in Wales, though valued over £1 million on paper, lack the liquidity to meet potential tax liabilities. He warned that this could lead to the fragmentation of farms that have been maintained by families for generations, posing a real threat to the industry and family-owned farms.
The Country Land and Business Association (CLA) has conducted initial calculations indicating that the average farm in Wales may need to sell 10-15% of its land to cover the tax burden resulting from these changes. This estimate does not account for farms structured as limited companies or other entities, potentially underestimating the broader impact.
CLA Actions
In collaboration with the other farming unions, we are requesting a complete reversal of the proposed APR/BPR changes. Our priority is to continue political engagement, alongside accurately mapping the direct and indirect implications for our rural communities.
In response to the government's simplified statistics, the CLA has launched the "Help CLA Save Your Family Business" campaign. This initiative encourages members and the wider community to sign a letter addressed to local MPs, highlighting the adverse effects of the proposed tax changes on rural businesses. The campaign aims to ensure that the collective voice of the rural community is heard in Westminster, advocating for a reconsideration of these policies.
The CLA's policy team is also developing an evidence-based dataset to present to the Treasury, providing real figures on the potential impacts on members and landowners. This data-driven approach seeks to inform policymakers of the unintended consequences these tax reforms may have on the rural economy.
A huge number of farms in Wales are valued on paper in excess of £1m, but by no means does that mean the farmers farming them have access to the funds to pay a potential tax liability. "It's a real threat to the industry, it's a real threat to family-owned farms and it could lead to the fragmentation of a lot of these farms which people have been farming for generations."
You can see the full piece on ITV and we have continued to push the PR messages to keep the issue at the forefront of the news.
Should any of you be meeting with or hosting MSs or MPs, please feel free to request CLA Cymru input and attendance. We must keep this issue at the forefront of politicians’ minds and we urge you all to help us do so.
Advice and support
For our members, we have been updating all our succession and tax planning advice on our website and we would encourage all of our members to review this valuable information.
Steve Reed, DEFRA Secretary is due to attend our Rural Business Conference in London on 21st November and there is still time to register.
The CLA Cymru team will also be available to meet in person at the CLA Pavilion at the RWAS Winter Fair to continue to update our members on the budget outcomes, the Sustainable Farming Scheme, and other policy matters.
CLA Cymru always seeks to ensure that any changes to agricultural policy respect the unique character of Welsh agriculture and promote a balanced approach that safeguards rural livelihoods. We will continue to research accurate data and implications on all our members and update all our communication channels.
Please feel free to reach out to the team.
