The Chancellor is facing calls to reveal whether she inadvertently tipped off a Labour MP with a 2,200-acre family estate about her inheritance tax raid on farms.
The parents of Henry Tufnell, elected in July in Mid and South Pembrokeshire, transferred ownership of Upper Colne Farm and Stud directly to his brother Albermale 20 days before the October Budget.
The move means that the new ‘family farm tax’ won’t be due on the land – thought to be worth more than £20million – when they pass away, provided they live until October 2031.
It has raised questions over whether Mr Tufnell, known as the party’s ‘poshest’ MP, was informed about these changes in advance to avoid the levy.
Shadow Financial Secretary Gareth Davies has now written to Rachel Reeves about the ‘incredibly serious reports that have now emerged’.
He said: ‘As I am sure you are aware, the Daily Mail has reported this weekend Mr. Henry Tufnell’s 2,000-acre family estate undertook a series of sudden and drastic tax avoidance measures before you delivered your first Budget.
‘This included moving thousands of acres of land, including hundreds used for agricultural/arable purposes, from his parents to his brother, and the setting up of a trust for their property.’
He has asked whether any ministers, special advisers or Treasury officials let Mr Tufnell know about the changes in advance. Mr Davies also queried the content of the ‘briefing sessions’ held with Labour MPs ahead of the Budget, and whether any information slipped out this way.’
He added: ‘You have said large estates must pay their share. Do you believe that Mr. Tufnell’s actions are consistent with the Government’s position?
‘I am sure you will appreciate that these are not trivial matters.
At a time where tens of thousands of farmers across the country are raising the alarm about the damage this policy will do to their livelihoods and their children’s futures the prospect that one of your MPs, potentially acting on inside information, has moved to protect their interests is highly troublesome.
‘Without fulsome answers to these questions the British public might rightfully conclude that there is a pattern of deceitful behaviour in the Labour Party and a lack of transparent permeating all levels of your government.’
Mr Tufnell has denied any inside information, while a source close to his family said the Tufnells were simply preparing for a tax raiding Labour government more generally.
The MP said: ‘I appreciate that it looks bad, but there’s nothing that I can do about it. I guess the point is that your family is your family, and Dad has taken tax advice and spoken to financial advisers and has started succession planning.
‘But it’s not because of something I told him.’
Labour did not respond to a request for comment.
A Treasury spokesperson did not address the claims directly but said: ‘Our commitment to farmers remains steadfast – we have committed £5 billion to the farming budget over two years, including more money than ever for sustainable food production.
‘Our reform to Agricultural and Business Property Relief will impact around 500 estates a year. For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest free.
‘This is a fair and balanced approach that fixes the public services we all rely on.’
