Tax due if parents hand on £3m house: £940k
Tax due if parents hand on a £3m farm: £0
A reminder of significant tax advantage to farmers vs everyone else AFTER these changes
Tax due if parents hand on a £3m farm: £0
A reminder of significant tax advantage to farmers vs everyone else AFTER these changes
Comments
Tax the buggers!
1. Farming is a public good
2. Land value is completely decoupled from earnings
3. Profit margins for family-run farms are very small
We are putting our food security at risk in order to get one over on people we imagine to be better off than us
Doctors, Firemen, Police, Paramedics - what about them ?
2. The Value of farmland now reflects its value as a tax-break, not as its profitability in food creation.
3. But they voted to
What do you mean by farmers voting for smaller profit margins?
It's an asset, they need to pay their way like other people
They recently had to deal with an estate valued at £6.13m. They settled all debts at 32k leaving £6.08m between 4 siblings.
These two articles come to mind.
...'farmers accounted for only 44% of open market transactions in 2023.'
... 'private and institutional investors and lifestyle buyers – accounted for 56% of sales.'
https://rural.struttandparker.com/article/english-estates-farmland-market-review-winter-2023-24/
https://www.southwestfarmer.co.uk/news/24694247.jeremy-clarkson-mocked-blasting-rachel-reeves-budget/
Whatever I had left after IHT was mine to do with as I pleased.
So your argument doesn’t really work does it.
I was trying to explain that my late Mum’s house was just a private house.
Whereas a farm has a purpose in providing food for the shops and supermarket so we can buy them.
Does that help?
People have family businesses other than farming, but don’t get the same tax perks. 🤷
Tbh if I was a farmer I’d be tempted to cash is and go and live an easier life.
40% of £2m is £800k. If its only one parent passing it on the threshold is 500k so v. close to the stated 940k
Clearly the government doesn’t.
Hence food production is going down.
End that distortion and let prices fall to levels where it's commercially sensible to farm and production should go up.
We're one of the most food secure countries in the world despite - or rather, *precisely because* - we already import most of our food. Singapore produces no food, and is among the most food secure countries.
It’s a political choice as they will lose zero votes.
No wonder so many of them have time to piss about in London.
If passed to a child extra £175k applies making £500k
2 parents = 2x£500k = £1m
But estates above £2m clawback the £175k leaving only 2x325k=£650k
So IHT = 40% of (3m - 650k) = £940k
But where do you get the cash to pay it?
Difficult as IHT is usually paid before probate is granted
Banks will lend as secured on probate assets
HMRC may accept staged payments
makes the role of executor even harder
Pension scheme administrator will probably pay IHT
Currently being consulted on
Said his family didn’t want to carry on farming so sold the farm.
No inheritance tax!
Maybe if inheritors sell their farm the full 40% should be due.
I reckon a lot of people upset their clever tax avoidance plan is now going to cost them.
I tried to make this point on Twitter earlier.
The £3m figure is theoretical for those married and in optimum position at time of death
Oh wait they both could be or not
Ah but they live in the property
Both might both might not
Ah but it’s their job
Well it could be for both or not
It’s the same argument for capital gains but they are wealth creators
But siphon it to the caymans
Go after tax avoidance and tax evasion go after offshoring make the tax wealth appropriately and the uk would prosper 💜🦋💜
Looks like a win to me.
(That's after all their allowances and a 10yr, no interest repayment schedule)
It should be: "No inheritance tax for anyone