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Proposed Inheritance Tax Changes Could Affect Far More Farmers Than Expected, Warns Expert

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Proposed changes to agricultural inheritance tax relief, dubbed the “tractor tax,” may impact five times more farmers than the government has estimated, according to the Central Association of Agricultural Valuers (CAAV). The Treasury has claimed that around 500 farmers would be affected annually by the new rules. However, CAAV secretary Jeremy Moody argues that this estimate is significantly underestimated, suggesting that the changes could actually impact as many as 2,500 farmers each year.

Moody contends that the government’s analysis fails to account for the full complexity of the farming industry, particularly overlooking farmers who only claim Business Property Relief (BPR) rather than Agricultural Property Relief (APR). This group includes farmers who own land but not the farmhouse, farming partnerships, tenant farmers who don’t own land or buildings, and farmers who hold shares in family businesses.

“They’re wrong because they’re working on an incomplete picture,” Moody said, criticizing the government’s understanding of the sector. “What they got wrong is, they didn’t know what to ask and HMRC couldn’t answer them even if they had.”

The proposed changes, due to take effect in April 2026, will reduce the amount of land and business assets eligible for 100% inheritance tax relief. Currently, farmers can claim up to 100% relief on land, buildings, operational equipment, and livestock. Under the new rules, only the first £1 million of combined land and business assets will qualify for full relief. Any amount above this threshold will be taxed at 20%—half the standard 40% inheritance tax rate.

The government has argued that the changes will still allow farmers to benefit from a nil-rate tax band of £1.5 million per individual, meaning a married couple could pass on up to £3 million in assets tax-free, including personal inheritance tax allowances. However, Moody disputes this interpretation, insisting that personal tax allowances should not be applied to business assets.

“That seems to me to be basically wrong,” Moody commented, noting that this approach could lead to the taxation of personal assets at 40%, effectively undermining the financial stability of many farmers.

The BBC Verify fact-checking service has supported the Treasury’s estimates, with the government highlighting this analysis in its public statements. However, Moody criticized both the government and the BBC for failing to fully grasp the nuances of the farming sector.

A government spokesperson reaffirmed the commitment to the agricultural industry, pointing to a £5 billion investment in the farming budget over two years. The spokesperson also reiterated the estimate that around 500 claims of Agricultural and Business Property Relief would be affected by the changes, though they acknowledged the complexities of determining inheritance tax liability across different types of farms.

Moody warned that, over time, around 75,000 farms could be impacted by the changes, urging more thorough consideration of the sector’s diverse circumstances.

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Workers Leave Companies with Rigid Office Attendance Rules, Research Shows

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A growing number of workers are leaving companies that impose strict office attendance policies, according to new research. Recruiters have reported a notable increase in job applications from employees at firms mandating full-time office attendance, with two-thirds of those surveyed observing this shift.

The findings, from a study commissioned by flexible workspace provider IWG, highlight a growing dissatisfaction with rigid office policies in the current job market. Three-quarters of recruiters said that candidates now regularly turn down roles that do not offer hybrid working options, while 72% believe businesses without flexible work policies are struggling to attract top talent.

This shift in worker preferences follows a series of major employers enforcing stricter remote working mandates. Companies such as Amazon, Asda, PwC, and Santander have implemented full-time office attendance policies. Amazon, for example, has ordered employees to return to the office starting in January, while Starling Bank has required hybrid staff to spend at least 10 days per month in the office, resulting in resignations from disgruntled employees.

Employees in roles requiring five-day office attendance have expressed frustration. Separate research from IWG revealed that 36% of these workers believe their employers risk losing top talent due to the inflexible policies. Nearly half (46%) are actively seeking new jobs that offer flexibility, particularly to avoid long commutes.

Mark Dixon, CEO of IWG, emphasized the advantages of hybrid working, saying, “The hybrid model boosts workforce productivity and job satisfaction while also cutting costs significantly. Flexible working is proven to enhance employee retention and competitiveness in the job market.”

The backlash against strict office mandates comes as economists, including Stanford University’s Nicholas Bloom, warn that such policies could ultimately backfire. Bloom predicts that a significant exodus of talent could force companies to reconsider and relax their return-to-office rules in the near future.

As businesses continue to navigate the shift in workforce expectations, many are facing increased pressure to adapt to the growing demand for flexible working arrangements. With job seekers increasingly prioritizing flexibility, companies that resist these changes may find themselves at a competitive disadvantage in attracting and retaining top talent.

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UK Councils Consider Visitor Levies to Address Over-Tourism and Support Local Services

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Tourists visiting the UK may soon face new charges as local councils explore the introduction of visitor levies to support services strained by over-tourism. The proposed levies, aimed at addressing the challenges posed by record visitor numbers, follow similar measures in popular European destinations like Berlin and Barcelona.

Nearly half of Scotland’s local councils, including Highland, Orkney, and the Western Isles, are currently considering the implementation of a tourist tax. Highland Council has already initiated consultations on a 5% overnight stay levy, potentially raising up to £10 million annually. The revenue would be used to improve local infrastructure and services. Edinburgh, the UK’s capital, is set to become the first city in the country to implement a mandatory levy, with plans to introduce it in July 2026. The city expects to generate £50 million per year through the new measure.

In Wales, the government is also set to unveil proposals for a visitor levy, focusing on popular tourist hotspots like Gwynedd, Pembrokeshire, and Cardiff. The aim is to fund tourism-related services and local amenities.

Ken Gowans, the economy chair of Highland Council, emphasized the need for sustainable tourism practices, noting, “The wear and tear isn’t caused by locals, but they’re paying for it through council tax. If we have this money, we can maintain and improve services for visitors and residents alike.”

The issue of over-tourism has been particularly acute in areas such as Skye’s fairy pools, the North Coast 500 route, and Orkney’s Neolithic sites. Popular destinations have faced challenges such as overcrowded roads, overwhelmed campsites, and environmental concerns. The travel guide Fodor’s recently included the North Coast 500 on its “No list,” citing the impact of high visitor numbers on the region’s infrastructure and environment.

In the Lake District, a study suggested that charges for overnight stays or vehicle use could help mitigate the environmental strain caused by the 18 million visitors the park receives annually, despite having just 40,000 residents.

While some in the tourism industry, including VisitScotland, support the levy as a means to invest in sustainable tourism, others are more skeptical. Critics, including hoteliers in Inveraray, argue that the tax could discourage visitors, potentially harming local businesses. However, Michael Hill, CEO of Friends of the Lake District, pointed out that similar levies in Europe have helped improve tourism destinations. “In many cases, visitor numbers actually increase after a levy is introduced because the place becomes better,” he said.

As UK councils move closer to implementing visitor levies, the goal is to balance the needs of local communities with those of tourists. By reinvesting the revenue into infrastructure, the levies aim to support sustainable tourism and ensure long-term benefits for popular destinations.

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Trump Expected to Fire FBI Director Wray, Signaling Another Shakeup in His Administration

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As President-elect Donald Trump prepares for his second term in office, speculation is growing that one of his first actions will be to dismiss FBI Director Christopher Wray, creating a new vacancy at the agency. This would mark a rare instance of a president firing two FBI directors, as Trump previously let go of James Comey during his first term.

Wray, a Republican, was appointed by Trump in 2017 to a 10-year term, a post designed to shield FBI directors from political pressure following the Watergate scandal. However, Trump’s tenure has repeatedly shown that political concerns often influence such decisions. If Trump moves forward with firing Wray, he will become the first president in history to dismiss two FBI directors.

The situation has drawn comparisons to previous firings. In 1993, President Bill Clinton dismissed FBI Director William Sessions following a report questioning his ethics. Similarly, President Jimmy Carter faced questions about firing FBI Director Clarence Kelley during his campaign in 1976, but ultimately Kelley resigned. The 10-year term for FBI directors was meant to ensure independence, yet Trump’s track record suggests such safeguards have not been effective.

Trump’s decision to fire Comey in 2017 was officially tied to his handling of the investigation into Hillary Clinton’s emails, but many believe the real reason was Comey’s involvement in the Russia investigation. The fallout from Comey’s firing led to the appointment of Special Counsel Robert Mueller, a former FBI director, to continue the probe into potential Russian interference in the 2016 election. Trump’s disdain for the investigation and its impact on his administration led him to label it a “deep state” conspiracy.

While the Mueller report ultimately did not find evidence of collusion between Trump’s campaign and Russia, it did not exonerate him on other matters. The report’s findings, along with related controversies such as the release of anti-Trump texts from FBI agents, further fueled Trump’s animosity toward the FBI.

Trump’s discontent with Wray has grown in recent years, particularly over what he perceives as Wray’s lack of loyalty. Despite being confirmed by the Senate in 2017, Wray’s independence from the White House—an aspect of his confirmation testimony—has led to tensions with Trump, who values loyalty above all.

Trump’s decision to fire Wray, if it happens, would fit into a broader pattern of bringing key institutions under his control. While earlier presidents worked to distance the Department of Justice and the FBI from political influence, Trump appears to be seeking to bring them closer to the White House’s orbit.

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