When inheritance tax on agricultural businesses was abolished in 1984 it had some unforeseen impacts. First it meant that the super rich started buying up farmland to avoid inheritance tax.
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That led to a steep rise in the price of farmland. That priced many aspiring farmers out of the business. It also meant that for those who did buy land the rate of return on capital was low.
So anyone who says that there was not a problem that needed solving is wrong.
Non farmers were responsible for 56% of land purchases last year.
400,000 hectares of land were taken out of use for agriculture in the same year.
Experts link this to financial advice that recommends tax breaks of investing in farmland.
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So anyone who says that there was not a problem that needed solving is wrong.
400,000 hectares of land were taken out of use for agriculture in the same year.
Experts link this to financial advice that recommends tax breaks of investing in farmland.
Source the London Economic