The Wealth Tax Commission has today issued its report, and has proposed a one per cent tax for the next five years on individual wealth over £500,000.

The tax would apply to all wealth, including homes and other property such as farms, pensions, as well as business wealth.

Commenting on today’s report, Sean McCann, Chartered Financial Planner at NFU Mutual, said: “Struggling farmers could be unintended victims of this proposed tax, as many can often be asset rich but cash poor.

"With reductions to the Basic Payment Scheme looming, they already face an uncertain financial future because of Brexit.

“An extra financial burden in the form of a Wealth Tax is likely to put even more strain on them during the biggest upheaval in British agricultural finances for half a century.

“The report itself acknowledges there are ‘severe problems of liquidity for farms’ and ‘highlights their poor profitability compared to capital values’.

“Therefore, any newly-formed Wealth Tax that takes capital into account would need to provide relief for the unique challenges British farmers face over the next few years."