Why has the government brought in this 20% inheritance tax for farmers?

I’m not sure where others stand on this but why should someone face such a potentially high bill for a farm that has been in the family generations?

 

It does seem unduly punitive given the challenges farmers face - I suppose the counterpoint is why should some people's valuable assets be exempted.

From what I've seen the inheritance value of a farm often gets pissed away on legal fees by squabbling siblings anyway.

 

It wasn’t a fishing politic question btw…….I'm just not sure targeting farmers, who seem to face many uphill battles already, was the wisest thing to do.

Have they said how much revenue they expect this tax to fetch in?

 

Yeah I know, and I wasn't having a go - I genuinely don't know enough about farming to provide an informed opinion but on face value it looks like it might be a nail in the coffin of domestic farming.

No idea how much it will raise.

 

Interesting question. It raises the silly question as to what a farm is. If they've diversified and get a large proportion of income from other means such as Cannon Hall Farm is that entity still treated as a farm or a conventional business. If the former, is it fair that they're treated any different from a normal business as far as tax on passing on the business to surviving family. I knew someone who came into around £5 million a few years back and subsequently bought farming land and buildings. Maybe or maybe not it could be a loophole to avoid conventional IHT. There was a farmer on the radio that IIRC said farming land had increased from £1,000 to £50,000 an acre over the last 20 years. Could this inflation be due to demand because people with wealth see it as a way to reduce IHT? I don't know why things were changed in the budget.

 

Up until a few months ago I was doing work in mid Wales, quite often on farms and the tenants/owners of the farms were relatively young ish people who in some cases said the land and farm had been in the family for generations……it’s not going to give the children of these farmers much appetite to continue the legacy of previous generations

 

I went for a hike round the Scouts Dyke Reservoir area last weekend, seemed to be predominantly dairy farming area, the farms I saw seemed to be doing pretty well, massive extensions, huge glass bespoke frontages, I mean I didn't see much evidence of nails in coffins of the farming industry.

 

Inheritance above 1 million or 2 million if split between 2 parties paid over 10 years seems quite fair to me...

When idiots like Clarkson gloat that they have bought farming land worth upwards of 4 million to avoid paying inheritance tax and millionaires are stock piling agricultural land to avoid tax something has to be done.

Smaller holdings are protected there are relief schemes to support them this was aimed at the greedy who use loopholes to hang on to money that should be used in our NHS or education system.

 

Seems a daft decision to me. Farmer dies, whoever gets it can't afford the tax so has to sell some of the land or gets out of the industry, less farming, more reliant on imports which is bad for our environment and economy.

 

https://x.com/DanNeidle/status/1851956384167776598

 

Dan Niedle is always an excellent source who doesn't play a political angle... Yet he doesn't get the coverage he should, clearly because of the right wing bias that would rather field a knee jerk reactive foghorn with little idea than an actual expert.

In terms of farming, the industry needs massive reform. They are hugely important, but their yields are at risk from climate change and we need them to produce as much as they are able while protecting habitat for wildlife. Something thats rarely done, though despite ELMs which is a start, the government have cut back the Defra budget.

On a flip side, there are plenty of farms utilising land for leisure and holiday let's rather than food creation. A symptom of lack of profitability in some part, but turning industrial buildings into residential isn't helping... Either farms, produce creation or wildlife... It's little wonder barn owl populations have suffered so much for example.

I'd also argue that supermarkets are the biggest part of the problem having suppressed prices so greatly for so long. And when you delve into the actions and stances of the NFU, it very much needs a change of leadership.

I don't know what the solutions are overall, but I'm not upset that the scope of IHT is being applied.

 

It’s a tax to catch Dyson and tax avoiders like Clarkson. Small farms won’t be impacted until it hits 2 million and this just brings it in line with other forms of inheritances

 

You always know it’s a good idea if it pi$$es off Clarkson and Kirsty Alsop

 

Its been a few days now since the budget and its telling how little comment there has been about it on here. That probably suggests overall its a decent one.

What is ridiculous though is the media reaction and how modest changes are being whipped up. The pound crashed apparently... Its only a penny less than yesterday. Gilts went bonkers... They increased slightly and have eased today... The media almost seem disappointed.

It was a tough old budget, and I'm pleasantly surprised they've gone for stimulus rather than all out austerity awaiting growth. But I'm fed up of the media giving easy passes to right wing mouthpieces and playing contrarian games with the government. It shows how broken the last tory govt were that they didn't cling onto power despite having so many aiding and abetting them.

 

Wouldn't the farmers consolidate (I know that isn't the right word but can't think of the right one) into a company instead of individual ownership?

If a farm worth £2m is owned by Farmer Jack and passes to his son, there will be inheritance tax.

If the same farm is owned by "Farmer Jack Farming Ltd" and the farmer/son are employed by the business there will be no inheritance tax. - although there will be business taxes to pay on it...

 

https://www.theguardian.com/uk-news/2024/nov/01/farmers-shocked-budget-inheritance-tax-estates

 

What's @Dyson been up to? Did he hide all the profits from West Stand Bogs?

 

Clarkson ruining it for everyone else. Only takes 1 numpty

 

A didn’t realise all farmers were tories……..the things you learn on here