A senior accountant is raising concerns over Cumbria's rural economy if the Agricultural Property Relief (APR) scheme is removed by the new Labour government.
Paul Hornby, managing director of JF Hornby & Co, is urging the government to consider the specific needs of the country's agrarian life before making any decisions.
He said: "The potential abolition of Agricultural Property Relief (APR) is deeply concerning.
"This relief is a lifeline for many farming families, allowing them to pass on land and buildings without the crushing burden of inheritance tax.
"Removing APR would be a devastating blow to the agricultural sector. The financial impact would be severe, potentially forcing many farming families to sell their land to cover inheritance taxes."
He further said the removal of APR could trigger a domino effect, affecting family-owned farms and the local economy, ultimately leading to the disintegration of rural communities.
He said: "The human cost is equally significant – generations of farming heritage and expertise could be lost, along with the sense of identity and purpose that farming provides to so many families.
“My plea to the new government is that they carefully consider and assess the impact such a move would have on the rural economy, before taking any decisive action.”
APR is a tax break that cuts the value of agricultural property when calculating inheritance tax, creating an opportunity for farms to be handed down generations without having to pay a large tax bill.
APR can cover up to 100 percent of the property's agricultural value, provided the land has been used for farming and meets specific criteria.
Mr Hornby said: "Agricultural Property Relief is crucial for ensuring the continuity of farming operations across generations.
"Without it, many families will face impossible tax bills, leading to the fragmentation and sale of agricultural land.
“This isn't just about financial loss; it's about losing a way of life, disrupting local economies, and the potential disintegration of rural communities.
“The government must understand the profound human and economic consequences that such a decision would entail."
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