The Welsh secretary says "I understand why farmers are concerned", but says only "a few farms" will be affected by controversial changes to inheritance tax announced in the government's Autumn budget. Jo Stevens adds that of the "500 farms affected" across the UK, most will be outside of Wales. 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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00:00I understand why farmers are concerned and you know they're worried because we need to move away
00:06from a perception of what will happen to the reality and the fact. So you know just for
00:11example a farming couple and these are you know there are lots of family farms in Wales,
00:16a farming couple can leave their farm to their children and the estate can be worth up to £3
00:23million before they pay a penny of inheritance tax. If their farm is worth, their estate is
00:29worth more than £3 million, they then only start to pay inheritance tax at half the rate,
00:35at 20% not 40% of the rate that is paid by other estates that attract inheritance tax which are not
00:42farming businesses and also when that inheritance tax liability arises they have 10 years in which
00:50to pay the bill. So those are very significant numbers in terms of the value of an estate
00:57and there will be few farms, we think around about 500 farms a year will be affected by the
01:03budget changes across the UK and of that 500 the vast majority will be outside of Wales,
01:10they will be in other nations of the United Kingdom.