[Politics] The Labour Government

[Wrong-Direction]

Bit annoying stamp duty for first time buyers has gone from £425000 to £300000

 

[LamieRobertson]

Bit annoying stamp duty for first time buyers has gone from £425000 to £300000

You should still be ok for that beach hut

 

[beorhthelm]

Irrespective of politics, can anyone explain why it is a good idea to tax businesses just for employing people? Surely is suppresses both employment and wages?

The tax could be collected quite reasonably from individual income and company profits.

( this latest rise is an additional £902 per employee on median earnings on £33000, taking it from £3298 a year to £4200 )

it's a good way to ensure some form of reliable taxation from business. we do already have income taxes, while company profits are variable and may not occur. without it, many business would pay next to no taxes.

it is literally a tax on jobs and not a great idea from that point. the gamble/judgement is that there's sufficient growth in economy to absorb it.

 

[dsr-burnley]

I don’t get the farm argument tbh

Let’s just take a typical adult having kids 20-35, living to say 70-85 or so. If they’re passing a farm to their child who is working the farm, why on earth by the time the farmer is 70 odd and presumably no longer working the farm, and the child is say 50 - haven’t they already sorted the ownership and business model out?

You have both Partnership and Limited Liability Partnership models, as well as going the Limited Company route.

No way I would work my arse off on the family farm into my 40s and 50s and be given nothing of it until my parent dies.

If you’ve got to your death in reasonable old age and given nothing to your offspring if they’ve worked hard on your farm all their lives then paying that tax is your own fault imho. Any reasonable person could logically see that as your child showed passion and enterprise and ability to work the farm, you would be offloading assets and control to them within your own lifetime.

You are of course assuming that we all have at least 7 years' notice of our date of death. Sadly, experience doesn't bear this out. And of course if you are talking about potentially exempt transfers, they would need to be incredibly careful of the "gifts with reservation" exemptions.

Otherwise, dying in possession of limited company shares or partnership assets is just as taxable as dying in possession of land and property.

 

[dsr-burnley]

The problem for farmers is that their return, based on asset value, is tiny. Suppose the farm is 200 acres, notional value say £2m, with a 5% return on asset value . Houses and barns use up the normal IHT allowance so the tax is £200k.

Annual profits are £100k less tax ( obviously subject to the usual big year-on-year variation) so perhaps £60k net of tax and NIC. So the new farmer has to live for 3+ years on fresh air because all his income has to go to pay the tax. And of course he is being charged interest and penalties.

If any thought has gone into this at all, it may be that the plan is to force family farms to sell to the highest bidder, which would probably be a multinational solar power company. The government could then claim to be wonderful supporters of green energy while importing more food from around the world. (But I very much doubt that that much thought has gone in to this policy. )

 

[Bold Seagull]

You are of course assuming that we all have at least 7 years' notice of our date of death. Sadly, experience doesn't bear this out. And of course if you are talking about potentially exempt transfers, they would need to be incredibly careful of the "gifts with reservation" exemptions.

Otherwise, dying in possession of limited company shares or partnership assets is just as taxable as dying in possession of land and property.

You’ve not really read what my post said at all.

 

[Hiheidi]

If any thought has gone into this at all, it may be that the plan is to force family farms to sell to the highest bidder, which would probably be a multinational solar power company. The government could then claim to be wonderful supporters of green energy while importing more food from around the world. (But I very much doubt that that much thought has gone in to this policy. )

I'm probably buying into online conspiracy theories about Bill Gates meeting with Starmer recently, but he's the US's biggest private owner of farmland owning almost 250,000 acres - so is it that crazy that he wouldn't buy farmland going cheap in the UK? The death of the family farm and all of that generational knowledge would be a shit legacy for this Government.

 

[vegster]

I'm probably buying into online conspiracy theories about Bill Gates meeting with Starmer recently, but he's the US's biggest private owner of farmland owning almost 250,000 acres - so is it that crazy that he wouldn't buy farmland going cheap in the UK? The death of the family farm and all of that generational knowledge would be a shit legacy for this Government.

Reeves explained very concisely on the BBC politics show this morning that It's 20% tax on the value of £1m plus farms...payable over 10 years, interest free. If 2 or 3 people co own a farm their tax exemption is £1m each so, a farm owned by 2 people worth £2m will be exempt if one dies...

 

[Titanic]

 

[Is it PotG?]

Tuition fees going up

Sir Keir Starmer will raise university tuition fees for the first time in eight years apparently.

This afternoon Bridget Phillipson, the Education Secretary, will announce the increase which will see tuition fees rise in line with the Retail Price Index inflation.

The fee rise is expected to come into force from September 2025, meaning that it will affect A-level students who are currently applying to universities.

Good luck everyone.

 

[superseagull1994]

Tuition fees going up

Sir Keir Starmer will raise university tuition fees for the first time in eight years apparently.

This afternoon Bridget Phillipson, the Education Secretary, will announce the increase which will see tuition fees rise in line with the Retail Price Index inflation.

The fee rise is expected to come into force from September 2025, meaning that it will affect A-level students who are currently applying to universities.

Good luck everyone.

Where has this been reported?

 

[Is it PotG?]

Where has this been reported?

 

[highflyer]

The problem for farmers is that their return, based on asset value, is tiny. Suppose the farm is 200 acres, notional value say £2m, with a 5% return on asset value . Houses and barns use up the normal IHT allowance so the tax is £200k.

Annual profits are £100k less tax ( obviously subject to the usual big year-on-year variation) so perhaps £60k net of tax and NIC. So the new farmer has to live for 3+ years on fresh air because all his income has to go to pay the tax. And of course he is being charged interest and penalties.

If any thought has gone into this at all, it may be that the plan is to force family farms to sell to the highest bidder, which would probably be a multinational solar power company. The government could then claim to be wonderful supporters of green energy while importing more food from around the world. (But I very much doubt that that much thought has gone in to this policy. )

Think you are falling for the spin from the wealthy landowners and TV celebrities cos-playing as farmers.
No idea why the discussion on this seems to have developed over on the Kemi Badenoch thread, but the last two posts there may be helpful.

 

[Guinness Boy]

Where has this been reported?

You mean where has it been reported again, since it was already reported along with the reinstatement of a maintenance grant for the poorest earlier in this year and earlier in this thread (or the multiple other ones, I lose track).

 

[Guinness Boy]

You are of course assuming that we all have at least 7 years' notice of our date of death. Sadly, experience doesn't bear this out. And of course if you are talking about potentially exempt transfers, they would need to be incredibly careful of the "gifts with reservation" exemptions.

Otherwise, dying in possession of limited company shares or partnership assets is just as taxable as dying in possession of land and property.

You can insure against it with a Gift Inter Vivos policy.

 

[Is it PotG?]

You mean where has it been reported again, since it was already reported along with the reinstatement of a maintenance grant for the poorest earlier in this year and earlier in this thread (or the multiple other ones, I lose track).

The fact that it is announced today has only just been reported

Do keep up.

 

[superseagull1994]

View attachment 191815

You mean where has it been reported again, since it was already reported along with the reinstatement of a maintenance grant for the poorest earlier in this year and earlier in this thread (or the multiple other ones, I lose track).

Thank you both

 

[dsr-burnley]

You mean where has it been reported again, since it was already reported along with the reinstatement of a maintenance grant for the poorest earlier in this year and earlier in this thread (or the multiple other ones, I lose track).

How expensive are those, roughly? And presumably not tax deductible.

 

[dsr-burnley]

Tuition fees going up

Sir Keir Starmer will raise university tuition fees for the first time in eight years apparently.

This afternoon Bridget Phillipson, the Education Secretary, will announce the increase which will see tuition fees rise in line with the Retail Price Index inflation.

The fee rise is expected to come into force from September 2025, meaning that it will affect A-level students who are currently applying to universities.

Good luck everyone.

Plus VAT, perhaps?

 

[Igzilla]

Tuition fees going up

Sir Keir Starmer will raise university tuition fees for the first time in eight years apparently.

This afternoon Bridget Phillipson, the Education Secretary, will announce the increase which will see tuition fees rise in line with the Retail Price Index inflation.

The fee rise is expected to come into force from September 2025, meaning that it will affect A-level students who are currently applying to universities.

Good luck everyone.

It makes no difference to the students what the tuition fee is, it only affects them on what the repayment mechanic is. A vast majority of students will not repay the loan in its 40 year term and it will get written off. It's a Graduate Tax, not a loan. What it does mean is that Universities will either stop losing money teaching UK students, or at least not lose as much as they have been losing.