Rachel Reeves says she is raising money in a "fair and balanced way", after receiving backlash from farmers over a new inheritance tax charge announced in her Autumn Budget. The chancellor closed a loophole to stop rich people investing in land to reduce their inheritance tax bills, penalising them with a new million pound tax threshold. But Reeves tells Channel 4 News, "73 percent of farmers will not be paying a penny more". Report by Brooksl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00On top of the normal inheritance tax thresholds that you can pass on if you're a couple of million pounds including a house to your descendants,
00:09in addition, agricultural property relief will now provide another million pounds of tax-free allowance.
00:15And then above that, there is a 50% discount on inheritance tax compared with what everyone else pays.
00:22And indeed, 73% of agricultural property reliefs don't exceed a million pounds.
00:30So small farmers won't be affected.
00:32We've got to raise money. I feel we've done that in a fair and balanced way.
00:36But 73% of farmers won't be paying a single penny more in inheritance tax.