Labour MP denies tipping off wealthy parents about inheritance tax changes

Martin Shipton

A Welsh Labour MP who comes from a family of wealthy English landowners has firmly denied tipping off his parents about plans by Chancellor Rachel Reeves to reform inheritance tax regulations.

Henry Tufnell was elected to represent Mid and South Pembrokeshire at the general election held in July.

The Daily Mail has reported how Mr Tufnell’s parents Mark and Jane Tufnell family transferred ownership of valuable farmland just 20 days before Ms Reeves’ Budget introduced controversial tax changes affecting farmers.

By passing ownership of part of their 2,200-acre Calmsden estate in the Cotswolds to Henry’s brother Albermarle, 22, the family could save millions in future tax liabilities under new rules targeting agricultural land.

Transferred ownership

On October 10, just 20 days before the Budget announcement, documents filed at Companies House show that Mark and Jane Tufnell transferred ownership of Upper Colne Farm and Stud directly to Albermarle, known as Albie . Upper Colne is a farming business that controls nearly a quarter of the Calmsden Estate’s holdings, with assets of £2,017,081, including £1,945,468 in agricultural land.

Under current tax laws, this transfer means death duty won’t be due on Upper Colne Farm and Stud when Mark and Jane die, provided they live beyond October 2031.

A second transaction occurred on October 24, just a week before the Budget, when Mark established the “Tufnell 2024 Settlement” trust, which it is understood will support any future children of Henry, Albie, and their sister Eleanor. Such discretionary trusts allow assets to pass directly from grandparents to grandchildren in a tax-efficient manner.

Labour’s new plans will abolish inheritance tax relief that previously exempted farmland from death duties. Under the changes announced by Reeves, land valued above £1m will be taxed at 20% upon the owner’s death. The policy has sparked outrage in farming communities.

‘Hypocrisy of the highest order’

Shadow Welsh Secretary Mims Davies criticised the Tufnell land transfer, calling it “hypocrisy of the highest order.”

She said: “Hard-working farmers and their families who are facing a real threat to their family farm will rightly feel very hard done by when it appears one of Labour’s own has managed, it seems, to be saved from this cruel tax hike,”

Welsh Conservative MS Sam Kurtz said: “This policy would devastate the hard-working family farms of West Wales—those vital food-producing businesses that deliver high-quality, environmentally sustainable produce to our shelves.

“When tax specialist Dan Neidle, whose earlier analysis Labour members once held up as justification for this policy, changes his position, saying it ‘hits farmers too hard and tax avoiders too lightly’, it then becomes clear that small, family-run farms would bear the brunt of its impact.

“Labour must now do the right thing: scrap this policy. It’s evident that it cannot, and will not, work.”

Foreknowledge

Denying that the MP had any foreknowledge of the Chancellor’s plans, a spokesperson for him said in a statement: “As has been widely reported, it would seem that even Steve Reed, the Secretary of State for DEFRA, was not aware of the specific changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) before the Budget was announced. It would therefore be implausible to suggest that Henry – a backbench MP – would have this kind of knowledge prior to the Chancellor’s Budget announcements before they were made public.

“The actions taken by Henry’s parents were based on professional advice from qualified financial advisers, reflecting prudent and responsible management of their family affairs.

This is something that every farmer in Pembrokeshire should consider in light of the Chancellor’s recent announcements, to ensure they are prepared for the evolving landscape of farming taxation.”