We were all lied to about Brexit. I voted remain but I don't blame anyone for voting remain considering the lies that were thrown around. Imagine someone who really wanted to save the NHS who didn't realise what depravity our politicians would sink to!
I don't think you're an accountant somehow...
😂
Please also consider those families where the parents never married.
The image you shared has flawed data, calculations and only uses the land value. Inheritance tax takes into account the land, farmhouse, farm buildings, farm assets (tractors etc.), crops and animals. I encourage you to disagree with me but please don't spout false info at me.
Maybe this will help you understand. youtu.be/10PWSsslQf4?...
www.gov.uk/trusts-taxes... I'll let you do your own research but if a trust is setup 7 years before the person dies there is no inheritance tax to pay. The Rich are able to afford the cost of setting these trusts up.
I'm all for taxing the rich, the politicians just don't understand the details of the inheritance system. They just looked at the land value and said "that will do". The issue I have with taxing the average farmer is that it will negatively impact everyone.
The average farm size is 222 acres, at a low land value of £10k per acre that's £2.22 million. Add a average farmhouse (£600k) and a couple of farm buildings (Av £150k per building) and your already over 3mil. Then you also need to add all of the machinery, crops and animals at the time of death.
Trusts do not pay inheritance tax. If a farm was gifted as soon as the policy change was announced, inheritance tax would still be due if the gifted died before 2031 (7 years later).
Yep, because it's not comparable. Land is required to grow food. Land is expensive due to everyone wanting a country estate. I do think Drs and Nurses should be paid more though.
The Rich are very unlikely to be affected, most will have trusts set up and only estates of those who die between 2026 and 2031 will pay IHT. The average farming family will foot the bill for the lies of the Tory party!
They voted for Brexit because they were lied to. A lot of people voted for Brexit to help save the NHS. We should hold the lying politicians accountable, not all of the victims.
You're right, this will only raise funds from a small number of farmers who die after April 2026 and don't live past October 2031. It almost as if the policy is design to raise a lot of money for the next few years. Unfortunately we will still pay the cost in increased food prices and a lower GDP.
I suppose that's a good tactic for when you hear a good point and have no response...
The average farm is valued at over £3 million when the land and farming assets are combined. This will affect most farmers. Sadly this policy comes at the expense of UK food security. The wealthy will use trusts to avoid the tax. All this will do is increase the cost of living further.
The Rich and the corporations will easily avoid the tax through trusts and buying land through limited companies. The average total value of a farm in the UK easily exceeds £3 million which means the policy is design to raise capital quickly, as if there was a black hole we need to fill...
That's a weak response to a valid point...
The Rich will easily avoid the tax. Put the land in trust or buy it with a limited company. If only farmers had been given the opportunity to gift the land to their children. I'm afraid the only way to avoid the tax now is to die before April 2026. I wonder what that will lead to!
And the new inheritance tax laws will allow them to buy more of that land at cheaper prices. They will avoid paying inheritance tax through corporations and trusts. None of which are possible as this tax change has blindsided the farming industry.
It's one thing having to sell a house worth over a million pounds to pay off a proportion of inheritance tax, it's quite another when you are having to sell of a large part of a business within a critical industry. Do you not like food grown in the UK?
I couldn't agree more!
These are not normal businesses though. Most businesses make at least 20% profit, most farmers make less than 1%. If you learn more about the economics of farming you will understand why farmers need support. Food security is good for all of us.
Yes but if they sell up, you lose. Most farmers make a less than 1% return on the value of their farms. Most farmers are not rich people, they just own a lot of assets. Who do you think will buy the land when they sell?
And farms produce the food that we eat. That's fairly important.
Definitely agree with this but it's a shame that labour didn't give farmers a chance to make the decision to gift their farms to their children before springing this tax on them.
Yeah! Punish the people working hard to feed us. Let's tax them so the super Rich can buy the land and increase food prices in the supermarkets.
How will they find the money? The percentage return for farmers is abysmal. They would be better of selling up and living off the interest. Most farmers get a less than 1% return on investment per year.
This tax will cause hardworking farming families to sell off land, which will be bought by the super wealthy and corporations. The end result is less food security and higher prices in supermarkets. The families forced to sell will be those on the edge.
Being a farmer is not a sought after occupation. You clearly have no idea of what it is really like being a farmer.