I dont know mate. My pal explained it to me as his family have a farm in wales, its not a large farm by most standards. His grandparents who own and run the farm pay themselves a salary of £22,000 from the farm. They are not well off but with the increase in land value they have expensive assets... - ThreadSky

crabbitcooface.bsky.social • 98 days ago

I dont know mate. My pal explained it to me as his family have a farm in wales, its not a large farm by most standards. His grandparents who own and run the farm pay themselves a salary of £22,000 from the farm. They are not well off but with the increase in land value they have expensive assets...

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crabbitcooface.bsky.social•98 days ago

They will need to sell a decent chunk of the farm land to pay the inheritance tax meaning much less land to farm and an even lower income. The liklihood is due to this they will have to sell the farm entirely because of it.

crabbitcooface.bsky.social•98 days ago

This means instead of being kept in the family it will be bought most likely by an already rich landowner or a corporation. I dont think that is something we should want to happen.

primenumberone.bsky.social•98 days ago

There are contingencies in place; there’s the 7 year rule, for example, if the grandparents transferred the assets 7 (or more) years prior to death, therefore avoiding the tax. Other rules allow them to take advantage of current household allowances, a couple can pass on up to £3M assets.

crabbitcooface.bsky.social•98 days ago

My understanding is that the value of the land has increased dramatically in the last few years putting them over the threshold for paying inheritance tax.
They do not make much income from the land as farming the size of land they have is simply not that profitable.

crabbitcooface.bsky.social•98 days ago

I mostly agree with you, i just think it is a subject that shouldnt be as polarised as it is. As you said every case is different but land in Wales is more expensive than the rUK while farming, according to Welsh parliment research, is less profitable. So maybe the approach should be different there

primenumberone.bsky.social•98 days ago

Maybe, I personally think that the media have piled on before reading all the actual detail. And, I genuinely believe that @uklabour.bsky.social will put in mitigation measures as & when the economy improves, same for the pensioners and everyone else hit by the most recent budget.

crabbitcooface.bsky.social•98 days ago

I dont disagree the media have piled on + as usual has done no one any favours by creating a polarised mess. I know Labour, who i voted for, hav to make unpopular decisions early on but they should still be held to task.
By the way, have enjoyed this, you brought up points i didnt know, so thank you

crabbitcooface.bsky.social•98 days ago

This means that paying the inheritance tax over x time by the grandparents children, who have families to feed, means its unviable as a business. The alternative of selling/reducing the size of the land to pay the tax means it is no longer viable as a farm as their income would be too low.

crabbitcooface.bsky.social•98 days ago

I get what you're saying with the 7 years but I think they are past the point where it is too much of a risk of them dying in the next 7 years. Also kinda cruel, not only are you coping with the death of your parents but as they died too early here is your large bill.

crabbitcooface.bsky.social•98 days ago

Essentially, yes the value of the land is high. If they sell it then yes they have momey but they understandably do not want to sell it as it has been in the family a long time and it is a family lifestyle. I am also more concerned with who then buys all this high cost land that will be up for sale

primenumberone.bsky.social•98 days ago

Every individual case is different, but anything over £3M worth of assets taxed at HALF the rate of anyone that’s a non-farmer feels like a pretty good deal. How many small ‘family’ farms are worth over £3M?

primenumberone.bsky.social•98 days ago

The ones who are making most noise about this are the BIG landowners, for example, James Dyson, a man who so believed in ‘sovereignty’ that he up sticks and took his business to Asia! The biggest landowners will have to pay out the most as they are the most guilty of buying up land from farmers!

primenumberone.bsky.social•98 days ago

Also, 100% relief is available for the 1st £1M business property & agricultural taxes. Above that, inheritance tax for farmers will only be 20%, payable over 10 years (interest free) instead of the 40% that others will pay for inheritance tax. So, not as bad as billionaires & shills will make out.

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