Farmers on the march

[Notch7]

And what about a child less unmarried farmer

how many of those own a farm singly that is worth above £1.325m?

Is Jeremy Clarkson one of those?

 

[motorbiking]

I dont suppose you will read this either:

the £1million limit being bandied around is not correct.

The inheritance tax relief for farmers of £1million is on top of £175k Residence nil rate band + £325k nil rate band (where eligible)

So for farmers the actual IHT is between £1.325m and £3m.

1.325 for non-dependent, 1.5M for unmarried £3M for married.

 

[noseall]

Didn’t read it

Standard. Just like your own links.

 

[Notch7]

1.325 for non-dependent, 1.5M for unmarried £3M for married.

so not the £1m you tried to claim when comparing to farm values

Also some farms may have separate owners, like 4 brothers in which case the IHT would be 4 x £1.325m minimum

 

[blup]

No

It was the word hiding that raised suspicion. My point is that if I write to the head of HMRC with a cheque for x thousand pounds and a covering letter saying I am paying at 50% instead of 45%, they must return the money, or at least the excess, saying they couldn't legally accept it.

 

[blup]

£3 million for a farm including its assets isn’t much when you consider a combine harvester could be worth £500 k

And what about a child less unmarried farmer who wishes to pass to a nephew?

I knew of a childless unmarried farmer whose nephew inherited and made a mint redeveloping the land. Probably still would have done with IHT

 

[JohnD]

£3 million for a farm including its assets isn’t much when you consider a combine harvester could be worth £500 k

A business of net value £3million, that claims to be cash poor, is unlikely to pay £500k cash for a machine.

When plant and machinery is bought using a loan, the net value of the business reduces by the value of the loan.

 

[motorbiking]

so not the £1m you tried to claim when comparing to farm values

Also some farms may have separate owners, like 4 brothers in which case the IHT would be 4 x £1.325m minimum

All my examples were for £3M+

 

[motorbiking]

It was the word hiding that raised suspicion. My point is that if I write to the head of HMRC with a cheque for x thousand pounds and a covering letter saying I am paying at 50% instead of 45%, they must return the money, or at least the excess, saying they couldn't legally accept it.

No letter required.

Your tax bill is X, you pay X+Y, Y sits there until you claim the overpayment, if you don't they keep it. There are a few days delay in synchronising payments with self assessment due. The obligation is on you to claim it back.

Feel free to test it:

sort code: 08 32 10.
account number: 12001020.
account name - HMRC Shipley.

 

[Notch7]

All my examples were for £3M+

Yes your examples weren’t typical family farms.

 

[Notch7]

Farmers generally have negative VAT returns.

So all the goods they buy, they get the VAT, but the produce they sell is zero rated.

 

[motorbiking]

Yes your examples weren’t typical family farms.

and you know this. how?

Do you think those protesting, were confused?

I stated correctly that between 25-35% of farms would be affected. I gave sources for valuations and sources of farm size.

Farmers generally have negative VAT returns.

So all the goods they buy, they get the VAT, but the produce they sell is zero rated.

Are you really that stupid?

They are in the food supply chain. The end consumer pays the VAT.

pig farmer produces pork, sausage roll company buys pork and makes sausage rolls, Greggs buys and cooks, JohnD buys a a hot Sausage roll. JohnD pays the VAT.

 

[ajohn]

If I remember C4's example of a £2m2 farm and a single owner the result was £14k/year 10 years with no interest charges.

£2m2 is seen as a good number to use, Much higher numbers bend the average value hence the choice as it covers the majority,

 

[motorbiking]

a repayment of 14k/per year you mean for ten years - so 140k IHT?

 

[ajohn]

a repayment of 14k/per year you mean for ten years - so 140k IHT?

obviously - they then asked the obvious - how much profit does a farm like this make.