beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,013
[News] Farmers
- Thread starter Harry Wilson's tackle
- Start date
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There are various ‘qualifying assets’ (land is one) in which you can reinvest your gains without paying any tax on them
Business Asset Rollover Relief
Relief from Capital Gains Tax (CGT) if you buy new business assets with the proceeds from selling old ones, check if you're eligible, how to claim
- Jul 10, 2003
- 27,747
Indeed, when actually you run your business as a business rather than some sort of family inheritance that shouldn't be subject to any of the tax regimes every other business operates under, a whole load of new opportunities open up.There are various ‘qualifying assets’ (land is one) in which you can reinvest your gains without paying any tax on them
Business Asset Rollover Relief
Relief from Capital Gains Tax (CGT) if you buy new business assets with the proceeds from selling old ones, check if you're eligible, how to claimwww.gov.uk
Who'd have thunk it
Can you explain a little more as to what the benefit to the farmer is that it is a gift with reservation (I'm no expert as you can probably gather)? If the farmer gifts the business for his son to carry on running and he retains ownership of the farmhouse and just retires would that still be the same?
There isn’t a benefit - there are complications but basically you can’t give your estate away while you’re alive and still have use of it (otherwise everyone would do that)
I know I keep going on about limited companies but surely you can hand over the controlling interest of a limited and then engage as an employee? You’d need to ensure/demonstrate you’re not a disguised boss but this is surely possible?
Dunno……..can you look it up somewhere?
Rdodge30
Well-known member
- Dec 30, 2022
- 617
An owner of a Ltd business is a different legal status to a director.
I thought that, for example, if you gift your house to your children then you can still live in it if you are paying a commercial rent. In my example, the farmer has effectively 'sold' the whole farm other than the farmhouse to his son. His son works the farm and the original farmer retires and just lives in the farmhouse. He isn't using the farm for any reason. A farm and a farm house are not intrinsically linked, so surely it would be possible.
- Jul 10, 2003
- 27,747
I'm sorry, but of course it's possible. How has every other family business managed to keep going ?
This was a tax loophole only open to farmers. They will now have to do what every other family business (and family with assets do).
It's not even as if this tax loophole has been closed, there's still huge advantages for farmers under IHT, it's just been tightened up a little
I wasn’t askingI'm sorry, but of course it's possible. How has every other family business managed to keep going ?
This was a tax loophole only open to farmers. They will now have to do what every other family business (and family with assets do).
It's not even as if this tax loophole has been closed, there's still huge advantages for farmers under IHT, it's just been tightened up a little
- Jul 10, 2003
- 27,747
- Jul 10, 2003
- 27,747
I've never been one for f***ing over the country to make a few more quid for myself but after all this stuff has been highlighted by the various demonstrations, it's making me wonder.
Even after after all the changes from this current budget, if I use my pension 'pot' to buy my kids a farm that means they'll pay half the IHT they're going to pay if I leave it in my pension 'pot' and will be given 10 years to pay it, compared to me leaving it in my pension and them getting hammered for 40% immediately.
Now obviously, I don't give a flying f*** about farming, but from the people posting on here, it's the 'sensible' thing to do, isn't it
Even after after all the changes from this current budget, if I use my pension 'pot' to buy my kids a farm that means they'll pay half the IHT they're going to pay if I leave it in my pension 'pot' and will be given 10 years to pay it, compared to me leaving it in my pension and them getting hammered for 40% immediately.
Now obviously, I don't give a flying f*** about farming, but from the people posting on here, it's the 'sensible' thing to do, isn't it
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How do you get at your pension pot now to be able to blow it all on agricultural land that is likely to fall in value anyway without losing a load in tax ?I've never been one for f***ing over the country to make a few more quid for myself but after all this stuff has been highlighted by the various demonstrations, it's making me wonder.
Even after after all the changes from this current budget, if I use my pension 'pot' to buy my kids a farm that means they'll pay half the IHT they're going to pay if I leave it in my pension 'pot' and will be given 10 years to pay it, compared to me leaving it in my pension and them getting hammered for 40% immediately.
Now obviously, I don't give a flying f*** about farming, but from the people posting on here, it's the 'sensible' thing to do, isn't it
Goldstone Guy
Well-known member
Here's the link to the interview, sorry if I've missed it and it's already been posted. Definitely worth a listen even if it's more about land ownership in general rather than IHT and farmers.
BadFish
Huge Member
- Oct 19, 2003
- 18,193
Sometimes you can tell if a purchaser is using it for tax purposes because they go on record to say so.
dsr-burnley
Well-known member
- Aug 15, 2014
- 2,625
It's a matter of national interest. To some, it doesn't matter if not only our food but also our power, our steel, even our armaments, are imported from friendly foreign nations. But to others, they're issues of national security.
This is the whole of Europe's issue, not just the UK's. If we collectively decide to end farm subsidies and import far more from the rest of the world, then we're in dead trouble if the rest of the world decides to keep it for themselves.
- Oct 20, 2022
- 6,902
This.
The key issue in this debate on IHT is that the productive value of land is less than the real estate value - so farmers will be taxed on a premium value of land when a/ they are not selling it (to release capital) but passing it down to their descendants b/ not earning anywhere close to the actual value of the land. The exemptions are laughable.
A very helpful discussion here hosted by The Farming Forum - I would suggest those living in urban areas with no connection to farming or real understanding of the issues to watch it as well of those working in the farming industry for some creative accounting solutions to the IHT proposal.
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Restrictions on the house are likely to stop it. You would need planning permission to change the deeds. You will not get it!
That's something we haven't grown yet . . . . I'm still eating our tomatos, and until the frost yesterday lettuce.
