Jim Allister QC comments on anti-farming tax rulings
19 March 2011
Commenting on the recent Evelyn ruling on farming taxation, TUV Leader and QC Jim Allister has linked the latest ruling with the earlier McClean judgement, saying both are propounding the same anti-farming philosophy. Jim Allister also said the Stormont Executive had been too easily satisfied with assurances over the McClean ruling and we were now facing the consequences.
In a statement Mr Allister said:-
"In large measure the recent tax ruling in the Evelyn case is a follow through from the previously damaging McClean ruling. The line of attack in both is that conacre letting is not a trade activity (which farming is) but an investment activity. Thus, the failure to address the McClean judgement through legislative action has induced the Evelyn ruling.
"While legislative responsibility lies at Westminster, the Stormont Executive has not adequately played its part in getting in place the protections necessary to reverse McClean and prevent Evelyn. Instead, of a sustained campaign for legislative change the Executive took their eye off the ball and particularly in December 2009 protrayed a Treasury letter as a victory and resolution when it was no such thing.
"Both the Finance and Treasury Ministers spun that letter as in some way circumventing the McClean judgement. It did not. In essence all the Treasury did was to reiterate that Inheritance Tax Agricultural Property Relief generally applies to land, whether let in conacre or not, which has been in family possession for 7 years, and which passes from one generation to another. But the damaging McClean ruling that if the land has hope development value then Business Property Relief does not apply and Inheritance Tax is payable on its development value, still stood. Yet both Minister Wilson and Minister Gildernew spun it as some sort of breakthrough and in consequence, I believe, took their eye off the McClean ball, resulting now in this further damaging judgement.
"Whereas the Treasury undertook to examine the situation there was no commitment to make the necessary legislative change, nor has it ever happened. By going asleep at the wheel on this issue the Executive let down the farming community.
"Now, we are faced with two damaging rulings and an even tougher battle to protect farming families.
"The first step that must be taken is appeal of the Evelyn ruling. There is scope for forceful argument on the Tribunal’s key consideration of what amounts to land “occupied for the purposes of husbandry” and there is a broad legal issue, with some relevant European law, on the retrospective intent of HMRC. Simultaneously the campaign to reverse the McClean ruling must be revived."
