Farmers on the march

[blup]

What do people think? Is it not fair for farmers to bear their share of IHT, especially those like Jezza and Lloyd Weber who got into it for lifestyle and investment.

 

[motorbiking]

I suspect there is an argument that some got in to farming as a way to protect wealth. However, the new rules don't discriminate against those running actual farms as genuine businesses.

The new rules could leave inheriting farmers bankrupt or forced to sell.

 

[pcaouolte]

They are being treated better than the rest of the population but still complaining.

They will only pay IHT on the value above £1M (not the whole value of the farm), but, as with the rest of us there is no IHT to be paid on the value of property up to £325,000, bringing the untaxed total to £1.325m. If the farmer is married, their spouse would be able to pass on another £1.325m tax free, taking the total untaxed amount to £2.65m. There is also a £175,000 tax-free allowance on a main residence when it's being passed on to children or grandchildren. This potentially brings the total untaxed amount for a farming couple to up to £3m.

Then they only pay IHT at 20%, not the 40% that the rest of us would pay.

 

[motorbiking]

So a typical 300-400 Acre farm, in the South/SE of England might have a value of around £6M. So that's a £600k tax bill. Not too easy to pay for business that returns a net profit of about 40-50k

 

[pcaouolte]

So a typical 300-400 Acre farm, in the South/SE of England might have a value of around £6M. So that's a £600k tax bill. Not too easy to pay for business that returns a net profit of about 40-50k

Net profit of 40-50k from a 300-400 acre farm? That's only £125 an acre.

 

[Brigadier]

They are being treated better than the rest of the population but still complaining.

They will only pay IHT on the value above £1M (not the whole value of the farm), but, as with the rest of us there is no IHT to be paid on the value of property up to £325,000, bringing the untaxed total to £1.325m. If the farmer is married, their spouse would be able to pass on another £1.325m tax free, taking the total untaxed amount to £2.65m. There is also a £175,000 tax-free allowance on a main residence when it's being passed on to children or grandchildren. This potentially brings the total untaxed amount for a farming couple to up to £3m.

Then they only pay IHT at 20%, not the 40% that the rest of us would pay.

Plus, they've potentially been passing wealth down, tax-free, for generations, have they not?

 

[Old Salt]

Could they not avoid IHT if the farm is registered as a ltd company?

 

[gas112]

Government saying only 500 max will be effected so why is there thousands and thousands in London protesting . Government getting their sums wrong yet again ?

 

[diy_fun_uk]

I don't have the original source however on Politics Live today it was mentioned that Clarkson stated one of the main reasons he bought his farm was to avoid IHT.

If taking farmers at their word, profits are minimal and many are asset rich cash poor. So depending on the IHT bill, they could be forced to either sell a % of their land or sell the farm altogether. Bitter pill to swallow especially if it's been in your family for generations.

I think it's a disgusting tax period, however that's a different discussion.

 

[Brigadier]

Bitter pill to swallow especially if it's been in your family for generations.

Plus, they've potentially been passing wealth down, tax-free, for generations, have they not?

 

[charliegolf]

They only got agricultural relief in the early 90s. Did the exemption increase food security as intended? If it didn't*, why keep it.

*Dunno the answer...

 

[JohnD]

Well-known farmer and multi-billionaire James Dyson has also found that his careful plans to maximise tax concessions are not all going to work.

Horny-handed son of the soil, Jeremy Clarkson, is similarly peeved.

 

[diy_fun_uk]

Plus, they've potentially been passing wealth down, tax-free, for generations, have they not?

So what?

 

[charliegolf]

Plus, they've potentially been passing wealth down, tax-free, for generations, have they not?

No, see above.

 

[blup]

So a typical 300-400 Acre farm, in the South/SE of England might have a value of around £6M. So that's a £600k tax bill. Not too easy to pay for business that returns a net profit of about 40-50k

On top of the lower tax rate of 20 per cent, and the additional reliefs, they will have much longer period to pay the IHT debt at, IIRC, better rates of interest.. A lot of farms suffered after brexhit, with loss of labour and eu subsidies, and the last government did little to give them a clear picture of the future other than some limited assistance to larger farms and an emphasis on the environment. Rees Sprogg basically said rely on market forces. It is truly sickening to see Chemi Badenock telling the farmers we have got your back.