The department for rural affairs suggested exempting some older farmers from having to pay, Newsnight is told.
A bid by the department for rural affairs to soften changes to inheritance tax for farms - possibly by exempting some older farmers - has been rejected by the Treasury.
The Department for Environment, Food and Rural Affairs , which represents the interests of farmers in government, was informed about the change the night before it was announced in the Budget and believes it was not properly consulted.Defra suggested softening the policy to exempt some older people, possibly those over the age of 80.
Since its introduction in 1984, agricultural property relief has allowed small family farms – including land used for crops or rearing animals, as well as farm buildings, cottages and houses - to be exempt from inheritance tax. Some sources in government have expressed concerns that the chancellor is creating unnecessary grief over a change that is not, in relative terms, a huge money spinner.
Farmers leaders have been told by Defra that the figures come from the Treasury and not their department.
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