Civil servant's 'tone deaf' award for farming inheritance tax analysis
HMRC has been described as “tone deaf” for handing a civil servant an award for their analysis around the controversial inheritance tax changes.
The mandarin - who The Yorkshire Post is not naming - posted on LinkedIn that they had won the tax authority’s “expert of the year” award for work on “restricting agricultural and business property reliefs”.
Civil servants must carry out policy decisions made by ministers, and in this case Chancellor Rachel Reeves announced the changes in the 2024 Budget.
The reforms, which will come into effect next April, would introduce a 20 per cent inheritance tax rate on agricultural land and businesses worth more than £1m.
This would scrap exemptions which meant that no tax was paid to pass down farms and other rural firms to family members.
The Government has continued to defend its “fair and balanced approach which helps fix the public services we all rely on”.
The plans have faced intense opposition from the sector, which says cash-poor, asset-rich farmers will be forced to sell their land.
There have been protests across Yorkshire and the wider country, with National Farmers’ Union President Tom Bradshaw expressing concern some people may take their own lives to avoid their families losing their farms.
Country Land and Business Association director north Harriet Ranson said: “I am flabbergasted by the tone deafness of an award being made to HMRCs head of inheritance tax analysis whose evidence, at the behest of politicians, informed the government policy which is going to cost many farmers their homes and businesses, whilst subjecting them to enormous mental strain.
“To reward this policy, formed upon widely disproved figures, makes a mockery of evidence provided by the CLA and other respected rural organisations and other tax experts outside of government.
“It adds yet more insult to injury following the government’s ‘low to no’ detrimental impact on farms line in the Financial Bill published earlier this week. Marking your own homework rarely stands up to expert scrutiny.”
An HMRC spokesperson said: “It is the duty of civil servants to support the government of the day to develop and implement its policies as effectively as possible. The award was presented in recognition of expertise in providing important analysis to ministers."
Both the CLA and the NFU have expressed frustration that they are yet to meet Ms Reeves to discuss the controversial policy.
The duo have put forward a proposal for a “clawback mechanism”, backed by the cross-party Environment, Food and Rural Affairs (Efra) Committee, which has a majority of Labour MPs.
This would see tax applied at the full 40 per cent rate on inherited assets sold within a certain time period post-death if the proceeds are not reinvested into farming businesses.
NFU President Mr Bradshaw said: “Despite our persistent efforts, Chancellor Rachel Reeves still refuses to meet us to discuss our alternative ‘clawback’ proposal.
“The Treasury claims our solution will raise less revenue, but is refusing to release the modelling on how it came to this conclusion.”
A Treasury spokesperson said: “Government ministers regularly meet representatives of the farming industry to listen to their views.
“The latest data shows that 40 per cent of Agricultural Property Relief - worth £219m - was directed to just 117 estates.
“The money raised will go towards public services we all rely on daily instead.”