To find out what truth, if any, is hidden behind Biking of the Boatyard's claim.
Do you think you know?
Farmers on the march
- Thread starter blup
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Do you think you know?
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Somebody once said farmers are either rich or broke.
What effect do the other allowances have, for example when the deceased owner had a spouse or civil partner? Biking's assertion should not be treated as if it was true.
"The Treasury has set out that full exemptions for transfers between spouses and civil partners will continue to apply. There are also nil rate bands for inheritance tax which people would retain access to on top of the £1mn. A nil rate band is an amount of an estate that can be passed on free of inheritance tax. The tax-free allowance for residences is £175,000 per person. Each person also has a £325,000 tax-free allowance that can be applied to all types of assets."
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Luckily, there is no need to rely on numbers thrown out by people wanting handouts for multimillionaires.
Here''s a more reliable source.
Here''s a more reliable source.
To be fair torey policy after brexhit was pretty much: farmers should diversify, that ‘s the way market forces work. A lot of criticism is from people who are anti labor or anti tax. The government has to raise revenue to pay for tne nhs and roads. It has to fill potholes as well as blackholes.Farming is a special case and tax law recognises this. If every time a farmer died the dead hand of government grabbed 40% of the value of his land and farm buildings it would be impossible to hand the farm onto the next generation as a going concern to produce our food. Farming is almost unique in relying on being a generational concern. The IHT exemption relies on the farm actually being a working farm. It's not possible to buy one and keep it uncultivated as part of someone's investment portfolio - this won't satisfy the rules.
Or perhaps you would be happier if all farming families were taxed off the land, land was sold cheap to greedy developers and we are completely reliant on food imports.
Until now farmers have had to pay zero inheritance tax, but from April 2026 they will need to stump up 20 percent on assets above £1 million that are passed on. That's still less than the standard 40 percent for others who contribute inheritance tax. "If you take a typical case, which is parents who want to pass on their farm to one of their children … by the time you've built in the other income tax thresholds, it's only those with assets over £3 million that would begin to pay inheritance tax, and that's why I'm very confident that the vast majority of farms will be totally unaffected," Starmer told the BBC from the G20 summit in Rio. @ Politico
I guess my question is...why should farmers be exempt from this tax?
(if the UK had remained in the EU they could've applied for subsidies, like French farmers, but i guess that pig has left the building.)
I guess my question is...why should farmers be exempt from this tax?
(if the UK had remained in the EU they could've applied for subsidies, like French farmers, but i guess that pig has left the building.)
Adapt or die you said, when folk were voicing concerns about the Brexit cluster fùck.
"Use it as an opportunity" says biking from the boatyard.
I suppose if it affects wooly tie wearers with ruddy faces and eye brows on their cheeks, (Tories) then it's an outrage, eh.
My heart bleeds.
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I think they are mostly both.
if you look at farm sizes and yields per acre, the value of the farm based on the price per acre (I suspect the value is a bit more once you look at machines and equipment or perhaps its priced in?). Either way, it's a really sh@t business to be in. The profitability ratio based on ROA is incredibly poor.
These two links show what a farm is worth and what a farm earns. I know some on here think its BS, but I suspect these are fairly reasonable:
Updated arable farm profit forecasts for harvest 2024
Forecasts for profitability from harvest 2023 and for harvest 2024 from Strutt & Parker’s arable farm profitability model
rural.struttandparker.com
Agricultural land values in England reached a new record in 2023
Q4 2023 edition of Strutt & Parker’s English Estates & Farmland Market Review which shows that non-farmers bought more farms than farmers in 2023.
rural.struttandparker.com
Some people asked why are they protesting. I have answered that, The income on assets ROA is appalling for a farmer and it is this, that the government has failed to understand. That does't mean I support their protest or that I don't think there are some very wealthy "farmers" who do it for tax reasons.
But on the face of it. A 350 acre farm, that passes to direct descendants is going to get a 1/2 a million tax bill which they have to find from 50k per year net profit.
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I wouldn't be a farmer. The ROA/ROI is terrible. The only thing you've really got is capital growth on the Land.
Not much good having farms run as land banks, if people need food.
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Which farm? is there more than one? What is the actual financial position of the farmer? Any savings for example?
If the land is to be kept for farming, then why should it be taxed?
Or do you not believe in food security?
Are you going to complain when smaller farms are swallowed up by large corporates and lesser standard food ends up on your plate?
And farm land bought up by rich people/corporates with no intention of farming and in order to 'land bank' should be charged at the full IHT rate...
Surprisingly no-one can yet answer why the royals should be exempt from IHT
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You understand this is an IHT debate on a business?
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Yes, but you keep throwing in made up scenarios, as if they are fact, which just happen to support your argument. As you do...
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I've used the values from the above links. Nothing made up:
- value per acre, yield per acre and then how many fall above the limit is all you need to know.
final piece of the puzzle here. Figure 1.4 Seems ~25%ish would be landed with 500k+ tax bills should the owners die and pass the farm to descendants.
and if you look here:
Agricultural facts: Summary
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