Yes that’s true. But if your business is so fragile that it will be tipped over the age by a 10 yet repayment programme then you have to question how viable it actually is. Taxpayers subsiding businesses that would be unviable if unsubsidised isn’t something the right usually gets behind. - ThreadSky

pennyhorwood3.bsky.social • 107 days ago

Yes that’s true. But if your business is so fragile that it will be tipped over the age by a 10 yet repayment programme then you have to question how viable it actually is.

Taxpayers subsiding businesses that would be unviable if unsubsidised isn’t something the right usually gets behind.

Comments

ralphmould.bsky.social•107 days ago

Oh absolutely. The noise comes from wealthy tax avoiders, and small scale farmers who are duped into thinking this affects them. A worrying proportion of people don't eg. understand income tax is paid on a marginal basis, so why should we expect farmers to have a sophisticated view on tax affairs.

ralphmould.bsky.social•107 days ago

I think the actual number of "true" farmers is likely to be vanishingly small.. and will of course be the ones on the margin of threshold.

pennyhorwood3.bsky.social•107 days ago

Of course. And they’ll be all over the Mail & Telegraph!

danielgreveson.bsky.social•107 days ago

I think there will be a tiny number that will be adversely impacted in the sense that they are already too old to gift (say in 90s so can't expect to live 7 years) and have been holding onto the farmland asset specifically to pass on IHT free. Most will see zero impact.

petespur.bsky.social•107 days ago

Most farmers start to hand over their farms to their children as they approach 60 and want to wind down a bit. Provided they live long enough after full hand over (7 years?) there's no IHT liability.

danielgreveson.bsky.social•107 days ago

Exactly, so why the big hoo-ha!?

pennyhorwood3.bsky.social•107 days ago

Well this has been a very civil and interesting discussion. Feels…refreshing

ralphmould.bsky.social•107 days ago

I've usually been accused of being a bot by now. I should probably put a profile photo on to be fair. But never wanted to at the other place.

pennyhorwood3.bsky.social•107 days ago

That post is full of typos - sorry. An edit button would be great wouldn’t it?

jo4070.bsky.social•107 days ago

Don't worry Penny. I understood what you were saying, perfectly well - typos & predictive text are a way of life now! But how refreshing & relaxing to read a thoughtful reasoned thread without bots & trolls intervening (as in that other place). Well done bluesky👏

pennyhorwood3.bsky.social•107 days ago

100%

wolfy.bsky.social•107 days ago

The right seem to be very big fans of Socialism for the rich and big business and Extreme capitalism for the poor and low paid workers

danielgreveson.bsky.social•107 days ago

Yep and with fairly simple strategies IHT is essentially avoidable anyway. Ie gift it to next gen, as long as the donor lives 7 years, no IHT. Might the whole thing actually encourage old codgers to pass on the farm to the younger generation must sooner and let them crack on making it a success!?

ralphmould.bsky.social•107 days ago

Yes, I've read this before... Was it covered by the Economist

danielgreveson.bsky.social•107 days ago

And of course there's the argument that it might dissuade wealthy people from buying up farmland (for IHT), which artificially pushes up the value of land and stops young farmers from being able to afford to get into farming. So another potential win for the younger farmer - cheaper land.

pennyhorwood3.bsky.social•107 days ago

Will Hutton wrote similar at the weekend. Argued that if this measure tips old, barely profitable family empires into the hand of eager young farmers then it is all to the good.

kevhow.bsky.social•107 days ago

I guess the problem is that judged as a normal business,ie. return on capital, most small farms are not viable. But those running them are hefted to the land so continue when business logic would say sell up and invest the cash.

jorichardskent.bsky.social•106 days ago

This is exactly why the EU gave farmers subsidies … so that they could continue to operate and feed us even when they were not financially viable. Ie food security.

Ironic then that the likes of Farage are back again being “fake friends” and saviours to farmers having wrecked their finances. 😕

lovefarm.bsky.social•107 days ago

Climate disasters are also rendering farms unviable as well as supermarket price gouging - what you need to envisage and understand is what happens to the English countryside if all small farms bough up by huge industrial farming conglomerates ... use that as your starting point & work backwards 🤔

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