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[News] Farmers
- Thread starter Harry Wilson's tackle
- Start date
Full disclosure on Dan Niedle, he's a member of the Labour Party and part of their National Constitutional Committee.
But those land prices have been driven up by investors and speculators taking advantage of the lack of IHT on Farms. This has been highlighted by farmers for years now that agricultural land is trading at way above it's actual agricultural value. Shirely if this helps stop that, it is a good thing
How does that help the family passing it down a generation? Cash doesn't come into play one jot.
So they could easily sort that by looking at when land was bought and by who. If a farm has been owned by the same family for x amount of years and is then passed down the line they are exempt. If the land was bought since Y date then the passing of that down the line is subject to IHT.
Simply that would mean existing old family farms will have an exemption. Clarkson's estate would not neither would any new land bought by an 'old' farm.
ROSM
Well-known member
Yes he is. The constitutional committee is largely involved in discipline (policy, application etc).
He was also heavily critical of Labour Party manifestos in 2017 and 2019.
None of that stops him being a tax lawyer and tax journalist.
Main beneficiaries here will be lawyers and accountants, getting fees for helping farmers structure their assets in such a way as to get round it.
Rdodge30
Well-known member
- Dec 30, 2022
- 772
And would therefore probably have to sell the house? As the farmer’s kids would have to sell their livelihood…My kids, in a similar situation, but me not being a farmer would have to pay £1.6M immediately
A lot of the farmers are struggling and making £50/100k a year is not exactly the massive wages of the wealthy… especially not for the hours and days they have to work … so paying £800k back over 10 years would probably just mean selling up
I think that like the winter fuel allowance there is some sense in this IHT legislation.
Undoubtedly there are pensioners who do not need the winter fuel payment and as with John Magnier in Ireland and Bill Gates in the U.S. undoubtedly there are billionaires buying up agricultural land as a tax dodge. Unfortunately there are genuine farmers who are struggling who will be hit by the IHT legislation just as there are pensioners who are genuinely struggling who will be hit by the Winter Fuel legislation.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,064
business and farms are often asset rich with low cashflow and little cash on hand. if the state want to tax the assets they have to be sold to raise funds to pay. you break up the farm or business to pay taxes. secondary effect when family farm gets broken up the knowledgeable farmers leave altogether.
this used to happen, estates first then large farms broken up. they introduced the relief to avoid the problems IHT caused.
Profits are modest, costs high, supermarkets hold all the cards. Genuinely ITK @PILTDOWN MAN said new young folk aren't attracted to the industry.
The land when sold is being bought by the new elite, I've seen this in Sussex, a financial scammer (under police investigation) asking his neighbours what price for your land?
The market for Brightonians buying organic flour and sourdough is tiny.
Rdodge30
Well-known member
- Dec 30, 2022
- 772
I’m not sure that’s the case ? If you were to give your primary residence to your kids in order to beat the 7 year cut off point - but you continue to live there as your primary residence- is it still exempt from inheritance tax?
It's still subjective. He was involved in a radio debate a few weeks ago with a qualified tax expert with some opposing views. Neidle has been great on tax evasion, but that doesn't make him the all seeing eye on all matters taxation.
Thunder Bolt
Silly old bat
The ones who are affected can do that today. Just don’t die in the next seven years.
So these young farmers are going to get their money from where to buy the farm? You cannot expect to run a farm with any profit with less than about 100 acres. What bank is ever going to lend money to a start up business in such a low wealth creation and is known to be high risk.
Justice
Dangerous Idiot
If they block roads will they get five years in prison like the stop oil protestors?
- Jul 10, 2003
- 27,950
If they are paying 800K, this means their farm is worth approximately £7M. I'm sure that as with any business, as long as the business is sound, there are ways to commercially fund 80K pa for 10 years on a business worth £7M, if selling off parts is not viable.
They will need to change the way they do things to fall in line with the way all other Family businesses deal with inheritance, but they will still be getting a larger part of their business exempt and paying a lower rate of IHT over a longer period than any Family run business in any other industry.
- Thread starter
- #97
Yep.
Some farmers may need to have a think, and most should at least check out their landscape, and I understand that for some it will be a shock to the system (especially those who have grown used to a bucolic existence where there was no need really to think much about anything).
Nope. Would be treated as a ‘gift with reservation’ and still be included in the estate for IHT purposes. Maybe working farms that have been in families for generations should be exempt
You could potentially gift it to avoid IHT and still occupy it, but would have to pay a full market rent (on which the kids would pay tax)
- Thread starter
- #99
If.
(And how did it work before Thatcher gave the farmers a Golden Ticket in the 1980s?)
Bold Seagull
strong and stable with me, or...
So I don't disagree with that point, but the question is farms staying in family ownership and inheritance probably isn't helping that point either?
A farm subject to IHT is going to be a larger farm (presumably 50Ha+), and could for example sell a small holding 25 acre portion of land to cover it's IHT liability to a young aspiring farmer who can own his farm and have that aspiration.
I'm not sure this IHT is a catalyst for less young people to be attracted to farming. If many aren't attracted to the industry already the bigger question is why, and I wouldn't be surprised if some of it is working their arses but not getting a slice of the pie.