Farmers’ inheritance tax could affect five times more farms than Treasury said, analysis finds

Published

6 months ago

November 27, 2024

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The new inheritance tax policy could affect up to five times more farms than the Treasury initially said, according to new analysis.

The government said its plan to impose 20% inheritance tax on farms worth more than £1m will affect 500 farms in the 2026-2027 financial year, based on analysis of past claims.

However, the Central Association of Agricultural Valuers (CAAV) has looked at the numbers and found 2,500 farms could be affected each year.

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The group, which represents businesses across UK agriculture, found up to 75,000 individual farms over a generation – which they define as 30 years – could be affected by the tax.

Jeremy Moody, author of the report and secretary and adviser at CAAV, told Sky News the government figures had not taken into account farmers who only claim Business Property Relief (BPR).

Farmers protested last week, saying the tax would mean the end of many family farms because they would have to sell off land to pay it.

Environment Secretary Steve Reed had previously promised he would not change inheritance tax for farmers.

Many have said the government’s figures were incorrect and more than 500 family farms would be affected a year.

The National Farmers’ Union (NFU) said the real number is two thirds of farms of the UK’s 209,000 farms, while the Country Land and Business Association (CLA) said 70,000 farms would be affected.

But Mr Reed has insisted the figure is based on “raw data” and said the Treasury had taken into account all possible figures.

The Treasury said its figures came from data on farms that had claimed Agricultural Property Relief (APR), as well as those who claimed both APR and BPR – but not solely BPR.

Currently, to get 100% inheritance tax relief farmers have to claim APR for farmhouses, land and buildings, and BPR for machinery and livestock – but this can also be claimed for land and buildings.

What can farmers claim under APR and BPR?

Agricultural Property Relief (APR) and Business Property Relief (BPR) are mechanisms farmers currently use to claim 100% inheritance tax relief.

Different aspects of farms come under the two schemes, with some aspects able to be claimed under either.

APR:

Farmhouses used by farmers

Buildings used for agricultural purposes such as grain storage or to house livestock

Land used for farming and growing as well as woodland to help farming, such as woodland shelter belts

BPR:

Machinery, such as tractors

Livestock

Farmshops

Holiday and industrial lets on farms

Buildings used for agricultural purposes

Land used for farming

Not all farms have to claim BPR

Mr Moody explained some farms have to have farmhouses to be close to their livestock, so must claim APR for the farmhouse and BPR for machinery.

But, not all have to claim APR as not every farm includes a farmhouse. That’s because some farmers, mostly those who grow crops, do not live on the property – so they can just claim BPR.

“The Treasury didn’t look at BPR claims sitting there on their own,” he told Sky News.

“Unless you’re trying to argue the value of a farmhouse, which these days can be quite high, it’s just convenient to claim BPR on the land and machinery.

“A landowner might place the farm under BPR purely for simplicity because whether you claimed under APR or BPR has never mattered before.

“If a family farm is structured as a company then they also would only claim BPR, which isn’t wrong to do.”

How long is a generation?

Mr Moody added government figures fail to consider that farms are typically handed down every 30 years, for example from an 85-year-old who dies to their 55-year-old son or daughter.

“The government’s figures accept that the effect from introducing inheritance tax is over 75 years, they didn’t think about how long a generation is,” Mr Moody said.

Because of spousal inheritance tax relief, the government has said a couple would be able to pass on a farm worth up to £3m before paying any inheritance tax. They said as it is payable over 10 years it will not be a big hit – something farmers disagree with.

A government spokesman told Sky News: “Our commitment to our farmers is steadfast – we have committed £5bn to the farming budget over two years, including more money than ever for sustainable food production, and we are developing a 25-year farming roadmap, focusing on how to make the sector more profitable in the decades to come.

“We have been clear since this change was announced that around 500 claims of Agricultural and Business Property Relief each year will be impacted – this is based off actual claims data – and even when inheritance tax does kick in, it is effectively at half the rate paid by others.

“It is not possible to accurately infer inheritance tax liability from farm net worth figures as there are different circumstances affecting each farm, such as who owns it, the nature of ownership, how many people own it and how affairs are planned.”

Politics

UK to require crypto firms to report every customer transaction

Published

4 hours ago

May 18, 2025

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UK to require crypto firms to report every customer transaction

United Kingdom crypto companies will need to collect and report data from every customer trade and transfer beginning Jan. 1, 2026 as part of a broader effort to improve crypto tax reporting, the UK government said.

Everything from the user’s full name, home address and tax identification number will need to be collected and reported for every transaction, including the cryptocurrency used and the amount moved, the UK Revenue and Customs department said in a May 14 statement.

Details of companies, trusts and charities transacting on crypto platforms will also need to be reported.

Failure to comply or inaccurate reporting may incur penalties of up to 300 British pounds ($398.4) per user. The UK Revenue and Customs department said it would inform companies on how to comply with the incoming measures in due course.

However, UK authorities are encouraging crypto firms to start collecting data now to ensure compliance readiness.

The new rule is part of the UK’s integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework to improve transparency in crypto tax reporting.

The changes reflect the UK government’s aim to establish a more robust regulatory framework that supports industry growth while ensuring consumer protection.

UK Chancellor Rachel Reeves also introduced a draft bill in late April to bring crypto exchanges, custodians and broker-dealers within its regulatory reach to combat scams and fraud.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” Reeves said at the time.

A study from the UK’s Financial Conduct Authority last November found that 12% of UK adults owned crypto in 2024 — a significant increase from the 4% reported in 2021.

UK’s approach contrasts with EU’s MiCA

The UK’s move to integrate the crypto rules into its existing financial framework contrasts with the European Union’s approach, which introduced the new Markets in Crypto-Assets Regulation framework last year.

According to the MiCA Crypto Alliance, one key difference is that the UK will allow foreign stablecoin issuers to operate in the UK without needing to register.

There will also be no cap on stablecoin volumes, unlike the EU’s approach, which may impose controls on stablecoin issuers to manage systemic risks.

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Politics

Hong Kong police busts $15M laundering ring that used crypto, 500 bank accounts

Published

8 hours ago

May 18, 2025

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Hong Kong police busts M laundering ring that used crypto, 500 bank accounts

Hong Kong police arrested 12 people involved in a cross-border money laundering scheme that relied on crypto and over 500 stooge bank accounts to launder HK$118 million ($15 million), local news outlets reported.

The syndicate was dismantled on May 15, resulting in the arrest of nine men and three women in mainland China and Hong Kong.

The suspects allegedly recruited others to open bank accounts to receive proceeds from fraud cases, which were then converted into crypto at crypto exchange shops to launder the illicit funds, Hong Kong Commercial Daily reported on May 17.

The criminal organization rented a residential unit in the Hong Kong neighborhood of Mong Kok to plan and carry out its money laundering activities. Of the $15 million laundered, more than $1.2 million was linked to 58 reported fraud cases.

Caught in action

The bust followed police surveillance on May 15, when two recruits left the syndicate’s Mong Kok base — one visiting a bank, the other an ATM — before both went to convert the cash into crypto at a crypto exchange shop in the neighborhood of Tsim Sha Tsui.

Police arrested both individuals on the spot, seizing around HK$770,000 ($98,540) in cash before the funds could be laundered. The other 10 individuals, aged between 20 and 41, were arrested soon after.

Police seized approximately HK$1.05 million ($134,370) in cash, over 560 ATM cards, multiple mobile phones, bank documents and records related to crypto transactions.

Senior Inspector Tse Ka-lun of Hong Kong’s Commercial Crime Bureau claimed that the individuals often used bank accounts from their friends and family to launder the stolen funds.

Hong Kong reported a 12% year-on-year increase in fraud reports in 2024, with authorities making more than 10,000 fraud-related arrests. Of those arrests, around 73% involved individuals who held stooge bank accounts.

The crackdown comes as Hong Kong continues to roll out its crypto regulatory framework to support local innovation, protect consumers and establish itself as a crypto hub.

Hong Kong’s Securities and Futures Commission introduced new rules for crypto exchanges offering staking services in April. Two months earlier, the securities regulator rolled out a roadmap to improve market access, optimize compliance, expand product offerings, strengthen crypto infrastructure and foster relationships with industry players.

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Politics

Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

Published

11 hours ago

May 17, 2025

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Keir Starmer says closer EU ties will be good for UK jobs, bills and borders ahead of key talks

Sir Keir Starmer has said closer ties with the EU will be good for the UK’s jobs, bills and borders ahead of a summit where he could announce a deal with the bloc.

The government is set to host EU leaders in London on Monday as part of its efforts to “reset” relations post-Brexit.

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – but disagreements over a youth mobility scheme and fishing rights could prove to be a stumbling block.

The prime minister has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

His comment comes after Kaja Kallas, the EU’s high representative for foreign affairs, said on Friday work on a defence deal was progressing but “we’re not there yet”.

Sir Keir met European Commission president Ursula von der Leyen later that day while at a summit in Albania.

If agreed, the deal will be the third in two weeks, following trade agreements with India and the US.

Sir Keir said: “First India, then the United States – in the last two weeks alone that’s jobs saved, faster growth and wages rising.

“More money in the pockets of British working people, achieved through striking deals not striking poses.

“Tomorrow, we take another step forward, with yet more benefits for the United Kingdom as the result of a strengthened partnership with the European Union.”

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Conservative leader Kemi Badenoch has said she is “worried” about what the PM might have negotiated.

Ms Badenoch – who has promised to rip up the deal with the EU if it breaches her red lines on Brexit – said: “Labour should have used this review of our EU trade deal to secure new wins for Britain, such as an EU-wide agreement on Brits using e-gates on the continent.

“Instead, it sounds like we’re giving away our fishing quotas, becoming a rule-taker from Brussels once again and getting free movement by the back door. This isn’t a reset, it’s a surrender.”