Following on from the Budget, why shouldn't Farmers pay inheritance tax like the rest of us?

[JohnfromUK]

7 minutes ago, oowee said:

How many of the £520m are farms? 

 

Land is being taken from farming now precisely because of its tax advantages. 

Most taken for that reason is actually available to the farm rental market, so helps younger 'new' farm businesses.  one of the big local estates lets out more than half it's acreage to tenant farmers.

[oowee]

1 minute ago, JohnfromUK said:

Most taken for that reason is actually available to the farm rental market, so helps younger 'new' farm businesses.  one of the big local estates lets out more than half it's acreage to tenant farmers.

Where is that data?

[JohnfromUK]

7 minutes ago, TIGHTCHOKE said:

TTK is stating that the BBC are backing the Farm IHT issue.

It is the BBCs duty to report facts, not back policies.

Just now, oowee said:

Where is that data?

I know the local estate well - that's my local knowledge.

[oowee]

1 minute ago, JohnfromUK said:

It is the BBCs duty to report facts, not back policies.

I know the local estate well - that's my local knowledge.

Seems to me this has generated an awful lot of froth amongst Tory farmers, but I have no data for that either. 

It would be good to hear from accountants as to the ways around this IHT for true farmers. Even the seven year transfer rule is an apparently possible option. 

Adjacent to one of my farms are three large rewilding areas, the smallest being 70 acres and the largest being 600. No farming takes place. This from Savills about forming a syndicate for purchase.https://www.savills.co.uk/blog/article/217949/rural-property/buying-in-a-syndicate-to-secure-the-rural-dream.aspx

[amateur]

5 minutes ago, oowee said:

Where is that data?

Don't worry. If you quoted any data, he would tell you that it is wrong.

The Sir Humphrey on here only acknowleges data that supports his fairytale socialist vision where the lazy and feckless, together with the Channel Crossers, by some miracle now that there is a Labour government, suddenly become incentivised and support themselves, rather than the reality, which is that Labour would prefer us all to be poor supplicants, dependent upon their handouts

[oowee]

2 minutes ago, amateur said:

Don't worry. If you quoted any data, he would tell you that it is wrong.

The Sir Humphrey on here only acknowleges data that supports his fairytale socialist vision where the lazy and feckless, together with the Channel Crossers, by some miracle now that there is a Labour government, suddenly become incentivised and support themselves, rather than the reality, which is that Labour would prefer us all to be poor supplicants, dependent upon their handouts

Do you have any data for that 🤣

 

[amateur]

3 minutes ago, oowee said:

........It would be good to hear from accountants as to the ways around this IHT for true farmers. Even the seven year transfer rule is an apparently possible option. ......

Any transfer, other than to a spouse, which is not the main residence (so most of the land and farm buildings) would attract CGT, unless it were deemed to be a wasting asset.

3 minutes ago, oowee said:

Do you have any data for that 🤣

 

Historical precedent.

[oowee]

4 minutes ago, amateur said:

Any transfer, other than to a spouse, which is not the main residence (so most of the land and farm buildings) would attract CGT, unless it were deemed to be a wasting asset.

Lots of chat on the farming forum (as you might imagine) https://thefarmingforum.co.uk/index.php?threads/iht-and-cgt.418541/

[mellors]

Spoke to one of my farmers last night. 

He said any farm of 150 acres with machinery and house will be close or on 3 million value and getting that 3 million relief looks very difficult it will be more like 1.35 million allowance taking the wife's allowance into account so 400 thousand tax to paid over ten years after death will be the end of any of those farms. 

Coupled with that most farms that size rely on rented land to remain viable. 

Should then a private landlord die those farms will go with him. 

[ShootingEgg]

1 hour ago, oowee said:

It does not mean they pay IHT. Lots of chomping on the bit here without a lot of knowledge. 

Ah insult knowledge. Well done.

[oldypigeonpopper]

5 minutes ago, mellors said:

Spoke to one of my farmers last night. 

He said any farm of 150 acres with machinery and house will be close or on 3 million value and getting that 3 million relief looks very difficult it will be more like 1.35 million allowance taking the wife's allowance into account so 400 thousand tax to paid over ten years after death will be the end of any of those farms. 

Coupled with that most farms that size rely on rented land to remain viable. 

Should then a private landlord die those farms will go with him. 

Hello, There is going to be a lot more Farms than predicted by Labour on the News yesterday

[mellors]

13 minutes ago, oldypigeonpopper said:

Hello, There is going to be a lot more Farms than predicted by Labour on the News yesterday

Very little has been mentioned about the future of tenet farmers so far. 

With there uncertain future after private landlords death and land sold for IHT. 

 

 

[JohnfromUK]

1 hour ago, amateur said:

Any transfer, other than to a spouse, which is not the main residence (so most of the land and farm buildings) would attract CGT, unless it were deemed to be a wasting asset.

Correct - and the elephant in the room no one mentions.  And potentially if you pay CGT, transfer under 7 year rule, and don't live the full 7 years, you may pay BOTH CGT and IHT.

CGT is a probably a big sum for family farms since the land will have been in ownership for a long time (effectively since the last probate reset in most cases) - whereas land bought recently for (legal) tax avoidance purposes may show a much lower gain - hence less CGT.

[oldypigeonpopper]

9 minutes ago, mellors said:

Very little has been mentioned about the future of tenet farmers so far. 

With there uncertain future after private landlords death and land sold for IHT. 

 

 

Hello, Your right, Nothing much has been said about Tenant Farmers 

Edited 3 hours ago by oldypigeonpopper

[oowee]

1 hour ago, ShootingEgg said:

Ah insult knowledge. Well done.

🤣

But you are red through and through so no point in having these discussions.

You seriously have to ask this .. case and point your just a labour luvvy...

[LeadWasp]

Saved from the 2010 General Election. Posted as relevant to taxation.

Edited 1 minute ago by LeadWasp