Latest news with #taxraid
Daily Mail
3 days ago
- Business
- Daily Mail
The six burning questions everyone is asking financial advisers right now… and their expert answers: From inheritance to pensions, what you MUST know to avoid Rachel Reeves's looming tax raids
The threat of a tax raid looms large over Britons who have diligently saved and invested to build their wealth. With speculation mounting daily as to what tax rises could arrive in Rachel Reeves's autumn Budget, it's no wonder the nation's financial advisers are fielding a rush of questions from worried savers.
Telegraph
6 days ago
- Business
- Telegraph
Record number of farms shut in wake of inheritance tax raid
A record number of farms were forced to close for good this year after Rachel Reeves's tax raid made the future of thousands of rural businesses unviable. A total of 6,365 agriculture, forestry and fishing businesses have closed over the past year, according to the Office for National Statistics (ONS), the highest since quarterly data was first published in 2017. The majority of these closures took place during the first six months of the year after Ms Reeves, the Chancellor, announced in October that she would cut the amount of inheritance tax relief available to family farms. Just 3,190 businesses in the sector have been set up over the same period. It leaves a net loss of 3,175, indicating the number of farms is shrinking at the fastest pace on record. Victoria Atkins, the shadow environment secretary, said the farm closures were a result of 'Labour's disastrous tax policies'. She added: 'The crippling NICs increases, alongside the family farm and family firm taxes, are destroying generational businesses, creating job instability and even leading to devastating suicides. 'These statistics prove that Labour do not understand our rural communities and our rural communities cannot afford Labour.' Lee Anderson, a Reform UK MP, said rising taxes and red tape were 'pushing British farming to the brink'. 'No government in modern history has done more damage to rural Britain than Labour is right now,' he said. 'Farms are closing at twice the rate new ones are opening. This is completely unsustainable. Labour has betrayed the industry that helped build this country.' 'Beaten from post to pillar' Farmers are also grappling with the soaring cost of fertiliser and a poor harvest following the recent drought and floods last year. James Grindal, a 55-year-old third-generation farmer in South Leicestershire, said the poor weather and barrage of costs mean new farmers and entrepreneurs are reluctant to set up businesses in the industry. He said: 'Yields are quite a bit down this year, it has been so dry – we have not had decent rain for four or five months. 'People have been beaten from post to pillar. Whichever way you turn you seem unwanted. 'The Government is not over-supportive of us, with inheritance tax relief disappearing.' Mr Grindal's 84-year-old father still works on the farm and remains a part-owner. However, he warned that the Chancellor's tax raid meant that when his father dies, the family will be unable to invest in the farm as planned. Mr Grindal said: 'He is still actively involved in the farm – he still sits on tractors occasionally, why shouldn't he own a bit of the land he has worked hard to own? Out of nowhere [this tax was] dropped on us. 'When he passes away we are going to have to pay a fair bit of tax on that. It will probably stop us from doing some of what we are doing. 'I could understand the tax if we were going to sell it. But we are not, we are going to keep growing corn and feeding people.' Currently, family farms do not incur inheritance tax, receiving full relief on the usual 40pc rate. Under the changes introduced by Ms Reeves which take effect from April 2026, inheritance tax will be charged at a rate of 20pc, above a threshold of £1m. Farmers have objected that their businesses are typically cash-poor and low-margin, meaning they will be forced to sell chunks of their land to settle the bill. Mr Grindal said that the tax changes meant his teenage sons would be even more reluctant to take on the family business. 'There are not many people coming new into the industry. I've got two boys, 19 and 17, and I very much doubt they will come into farming,' he said. 'There is not a great deal of encouragement to get up at the crack of dawn and work all day and not get much reward for it, when they see what else they can do.' Confidence at 'rock-bottom' Tom Bradshaw, president of the National Farmers' Union, said confidence in the industry was 'at rock-bottom' with farmers facing 'a number of challenges.' The inheritance tax rise came as 'another bitter blow and another attack', he said. Mr Bradshaw added: 'It creates this continuing sense that the industry isn't valued and its worth to the country isn't being recognised. 'I can understand why the psychology is there that people will be taking the decisions that they may be resigned to sell off, and they are no longer able to make a living off it.' Victoria Vyvyan, president of the Country Land and Business Association, said taxes and red tape were undermining farmers' efforts to make ends meet. She said: 'This report says what ministers won't: rural businesses are being pushed to the edge. 'Farmers trying to modernise or diversify are blocked at every turn – by red tape, by National Insurance rises, by a government that talks growth while pulling out the foundations beneath it. 'Still, the countryside carries on. New businesses are opening. People are holding on. But grit isn't a strategy. What's needed now is simple: stability, clarity, and a government willing to listen – before more farms are lost and more families are forced out.' Michael Oakes, who sold his dairy business last year and now runs a beef herd in the West Midlands, said the rising demand for renewable energy was also compounding farmers' woes. He added: 'You've got some landlords taking land out of food production to put into solar.' Ms Reeves's tax change, which alongside a similar reduction in the relief for family businesses is set to raise up to £520m per year for the Exchequer, caused immediate political ructions with farmers driving tractors into central London to protest outside Parliament. MPs also heard emotional evidence from family farms about the dangers of the tax raid. Jonathan Charlesworth, a farmer in Yorkshire, said his father, John, took his own life in fear of the inheritance tax raid. Other farmers have told The Telegraph that the impending increase has opened a 'suicide window' for elderly business owners who worry they will impose a financial burden on their children and grandchildren by staying alive beyond April of next year. Any hopes the plans might be softened were dashed with the publication of the Finance Bill this week which confirmed the changes will come into force next year. A Department for Environment, Food & Rural Affairs spokesman said: 'Our commitment to farming and food security is steadfast and farming profits in the UK increased by £1.6bn last year. 'We are slashing costs and red tape for food producers to export to the EU, have appointed former NFU president Baroness Minette Batters to recommend reforms to boost farmers' profits, and we're ensuring farmers get a bigger share of food contracts across our schools, hospitals, and prisons.'
Yahoo
6 days ago
- Business
- Yahoo
BrewDog to close 10 pubs after Labour tax raid
BrewDog is shutting 10 bars across the country in the wake of Labour's tax raid on employers in the latest blow for the hospitality sector. The self-styled 'punk' brewer said on Tuesday it would close key locations such as Leeds, Sheffield, and London, as well as its flagship site in Aberdeen, and had begun a consultation with staff about redundancies. A spokesman for BrewDog called it a 'rationalisation' of the company's bar estate. 'Despite our best efforts, and the hard work of our teams, it has simply not been possible to make these bars commercially viable,' they said. In a letter sent to staff this week, James Taylor, chief executive, said the closures were part of a broader restructure of the company. He added: 'It positions our bar portfolio for long-term, profitable growth, but also takes into account the continued challenges facing the UK hospitality industry, including rising costs, increased regulation, and economic pressures.' The closures come as hospitality businesses across the UK grapple with soaring labour costs following an increase in employers' National Insurance (NI) contributions and the lowering of the threshold at which they are paid. Hospitality chiefs have argued that these changes will disproportionately hurt the sector because of the number of part-time and lower paid staff it employs. Many have already cancelled investments and paused hiring, while others have announced redundancies. A spokesman for BrewDog refused to disclose exactly how many jobs would be affected, but said 'every effort will be made to made to redeploy as many members of staff as possible'. Recent struggles Founded in 2007 by James Watt and Martin Dickie, BrewDog became one of Britain's biggest beer brands by using controversial marketing stunts. These included selling what they claimed was the world's strongest beer – served in the carcass of a squirrel – and hiring a tank to drive through London. Mr Watt claimed the business had a 'punk' ethos and frequently criticised the practices of big brewers like Budweiser's owner AB InBev. The company raised millions from thousands of retail investors it called 'equity punks'. However, in recent years it has struggled with accusations of being a 'toxic' workplace and questions over its finances. Mr Watt stepped down last year and has since launched a new company called Social Tip, though he still retains a seat on the board and a 21pc stake in the company. Mr Taylor, who took charge of the company in March, has shelved plans for a stock market float, saying in June that there were no plans to sell the business. Instead, he vowed to put the company on a more solid financial footing having made consistent losses. BrewDog's bar business posted a pre-tax loss of £6.7m in 2023 on revenues of £69.4m. This was down from an £11m loss in 2022. The closures will leave BrewDog with 49 bars across the country. It runs more than 100 across the world. Mr Taylor insisted in his letter the company was 'passionate' and still saw a 'significant long-term opportunity' for the brand's bars in the UK. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
22-07-2025
- Business
- Telegraph
BrewDog to close 10 pubs after Labour tax raid
BrewDog is shutting 10 bars across the country in the wake of Labour's tax raid on employers in the latest blow for the hospitality sector. The self-styled 'punk' brewer said on Tuesday it would close key locations such as Leeds, Sheffield, and London, as well as its flagship site in Aberdeen, and had begun a consultation with staff about redundancies. A spokesman for BrewDog called it a 'rationalisation' of the company's bar estate. 'Despite our best efforts, and the hard work of our teams, it has simply not been possible to make these bars commercially viable,' they said. In a letter sent to staff this week, James Taylor, chief executive, said the closures were part of a broader restructure of the company. He added: 'It positions our bar portfolio for long-term, profitable growth, but also takes into account the continued challenges facing the UK hospitality industry, including rising costs, increased regulation, and economic pressures.' The closures come as hospitality businesses across the UK grapple with soaring labour costs following an increase in employers' National Insurance (NI) contributions and the lowering of the threshold at which they are paid. Hospitality chiefs have argued that these changes will disproportionately hurt the sector because of the number of part-time and lower paid staff it employs. Many have already cancelled investments and paused hiring, while others have announced redundancies. A spokesman for BrewDog refused to disclose exactly how many jobs would be affected, but said 'every effort will be made to made to redeploy as many members of staff as possible'. Recent struggles Founded in 2007 by James Watt and Martin Dickie, BrewDog became one of Britain's biggest beer brands by using controversial marketing stunts. These included selling what they claimed was the world's strongest beer – served in the carcass of a squirrel – and hiring a tank to drive through London. Mr Watt claimed the business had a 'punk' ethos and frequently criticised the practices of big brewers like Budweiser's owner AB InBev. The company raised millions from thousands of retail investors it called 'equity punks'. However, in recent years it has struggled with accusations of being a 'toxic' workplace and questions over its finances. Mr Watt stepped down last year and has since launched a new company called Social Tip, though he still retains a seat on the board and a 21pc stake in the company. Mr Taylor, who took charge of the company in March, has shelved plans for a stock market float, saying in June that there were no plans to sell the business. Instead, he vowed to put the company on a more solid financial footing having made consistent losses. BrewDog's bar business posted a pre-tax loss of £6.7m in 2023 on revenues of £69.4m. This was down from an £11m loss in 2022. The closures will leave BrewDog with 49 bars across the country. It runs more than 100 across the world. Mr Taylor insisted in his letter the company was 'passionate' and still saw a 'significant long-term opportunity' for the brand's bars in the UK.
Telegraph
22-07-2025
- Business
- Telegraph
Surrey council plots ‘pointless' second homes tax raid
Councillors have agreed to launch a 'pointless' tax raid on second home owners in Staines, despite concerns no one will pay up. Spelthorne Borough Council has just 76 second home owners on its books, yet it has agreed to bring in a 100pc council tax premium from April 2027. Critics argued the small share of second home owners – which equates to 0.2pc of the Surrey borough's housing stock – will avoid paying the levy by making use of exemptions. Owners can swerve the additional rate for 12 months by listing their property for sale, without having to commit to a transaction. The home can also be marketed for let. Spelthorne Council, which was more than £1bn in debt as of January, became the latest local authority to tax second home owners following a meeting on Thursday. Local authorities in England were given the power to charge a double tax premium from April 1 under laws passed by the previous Conservative government.
