Excuses, Excuses, Excuses

[Archery1969]

Rebecca Wilson, a fifth-generation farmer from Yorkshire, told the Laura Kuenssberg programme that their farm could be facing a tax bill of nearly £1m when her parents died. On the same program Reeves said there would be 10 years to pay any tax owed.

That's ok then, Rebecca just needs to plan and find on average £100,000 per year on top of her salary/income.

Job done!!!!!!

[greenmark]

Rebecca Wilson, a fifth-generation farmer from Yorkshire, told the Laura Kuenssberg programme that their farm could be facing a tax bill of nearly £1m when her parents died. On the same program Reeves said there would be 10 years to pay any tax owed.

That's ok then, Rebecca just needs to plan and find on average £100,000 per year on top of her salary/income.

Job done!!!!!!

Nope still don't know what the hell is goiong on with this.
All I can say is if inheritors continue with a business, I don't think they should pay IHT until they sell the asset. How you police that Lord knows.

[Archery1969]

Rebecca Wilson, a fifth-generation farmer from Yorkshire, told the Laura Kuenssberg programme that their farm could be facing a tax bill of nearly £1m when her parents died. On the same program Reeves said there would be 10 years to pay any tax owed.

That's ok then, Rebecca just needs to plan and find on average £100,000 per year on top of her salary/income.

Job done!!!!!!

Nope still don't know what the hell is goiong on with this.
All I can say is if inheritors continue with a business, I don't think they should pay IHT until they sell the asset. How you police that Lord knows.

Its been explained and confirmed on the news.

Example:

Your father has a farm, he leaves it to you, dies. Your liable for 20% tax on the total value over £1 million including land, machinery, livestock. This is regardless of what you do with the farm. You have 10 years to repay the outstanding tax. You then leave it to your children, die, the process repeats. Every time its passed on, 20% tax is due on the total over £1 million.

Previously, farms were exempt from these tax rules.

[greenmark]

Rebecca Wilson, a fifth-generation farmer from Yorkshire, told the Laura Kuenssberg programme that their farm could be facing a tax bill of nearly £1m when her parents died. On the same program Reeves said there would be 10 years to pay any tax owed.

That's ok then, Rebecca just needs to plan and find on average £100,000 per year on top of her salary/income.

Job done!!!!!!

Nope still don't know what the hell is goiong on with this.
All I can say is if inheritors continue with a business, I don't think they should pay IHT until they sell the asset. How you police that Lord knows.

Its been explained and confirmed on the news.

Example:

Your father has a farm, he leaves it to you, dies. Your liable for 20% tax on the total value over £1 million including land, machinery, livestock. This is regardless of what you do with the farm. You have 10 years to repay the outstanding tax. You then leave it to your children, die, the process repeats. Every time its passed on, 20% tax is due on the total over £1 million.

Previously, farms were exempt from these tax rules.

But how does that compare to other businesses. So far as I can see IHT on farms is/was more favourable than other businesses.
But In general farm, hairdresser, garage. I don't care. Until you cash in the asset you should not be taxed. Thats just my view.

[Archery1969]

Nope still don't know what the hell is goiong on with this.
All I can say is if inheritors continue with a business, I don't think they should pay IHT until they sell the asset. How you police that Lord knows.

Its been explained and confirmed on the news.

Example:

Your father has a farm, he leaves it to you, dies. Your liable for 20% tax on the total value over £1 million including land, machinery, livestock. This is regardless of what you do with the farm. You have 10 years to repay the outstanding tax. You then leave it to your children, die, the process repeats. Every time its passed on, 20% tax is due on the total over £1 million.

Previously, farms were exempt from these tax rules.

But how does that compare to other businesses. So far as I can see IHT on farms is/was more favourable than other businesses.
But In general farm, hairdresser, garage. I don't care. Until you cash in the asset you should not be taxed. Thats just my view.

Ofcourse its much more favourable compared to other businesses. Others are taxed at 40% and not 20%.

But, my opnion, like yours I think, its not been sold, its been passed onto family. If they sell it then fair enough but where is the incentive to continue running it and helping the food chain.

Covid 19 brought home the fact that the UK doesn't produce enough food, hence we couldn't shut down like New Zealand did. We needed food being imported otherwise it would probably have been rationing in some shape or form.

Why would you penalise someone or industry thats supplying food or energy. People need those basic things to survive.

[greenmark]

Its been explained and confirmed on the news.

Example:

Your father has a farm, he leaves it to you, dies. Your liable for 20% tax on the total value over £1 million including land, machinery, livestock. This is regardless of what you do with the farm. You have 10 years to repay the outstanding tax. You then leave it to your children, die, the process repeats. Every time its passed on, 20% tax is due on the total over £1 million.

Previously, farms were exempt from these tax rules.

But how does that compare to other businesses. So far as I can see IHT on farms is/was more favourable than other businesses.
But In general farm, hairdresser, garage. I don't care. Until you cash in the asset you should not be taxed. Thats just my view.

Ofcourse its much more favourable compared to other businesses. Others are taxed at 40% and not 20%.

But, my opnion, like yours I think, its not been sold, its been passed onto family. If they sell it then fair enough but where is the incentive to continue running it and helping the food chain.

Covid 19 brought home the fact that the UK doesn't produce enough food, hence we couldn't shut down like New Zealand did. We needed food being imported otherwise it would probably have been rationing in some shape or form.

Why would you penalise someone or industry thats supplying food or energy. People need those basic things to survive.

I agree. At the very least Labour ahould explain why they are doing this. Is it that some have a few sheep and have claimed IHT exemption without it being a going concern as a farm? If so, just flipping say so. Make it crystal clear. But I'm afraid my team have let me down on this and pretty f***** off.

[Archery1969]

But how does that compare to other businesses. So far as I can see IHT on farms is/was more favourable than other businesses.
But In general farm, hairdresser, garage. I don't care. Until you cash in the asset you should not be taxed. Thats just my view.

Ofcourse its much more favourable compared to other businesses. Others are taxed at 40% and not 20%.

But, my opnion, like yours I think, its not been sold, its been passed onto family. If they sell it then fair enough but where is the incentive to continue running it and helping the food chain.

Covid 19 brought home the fact that the UK doesn't produce enough food, hence we couldn't shut down like New Zealand did. We needed food being imported otherwise it would probably have been rationing in some shape or form.

Why would you penalise someone or industry thats supplying food or energy. People need those basic things to survive.

I agree. At the very least Labour ahould explain why they are doing this. Is it that some have a few sheep and have claimed IHT exemption without it being a going concern as a farm? If so, just flipping say so. Make it crystal clear. But I'm afraid my team have let me down on this and pretty f***** off.

Agreed. Someone needs to explain the reasoning quickly. I cant think of a justification for doing it. Suicide rates in farming far outweigh other industries. Hopefully that doesn’t increase with this flawed policy.

[firlandsfarm]

So far as I can see IHT on farms is/was more favourable than other businesses.
But In general farm, hairdresser, garage. I don't care. Until you cash in the asset you should not be taxed. Thats just my view.

Business assets qualify for relief ... https://www.gov.uk/business-relief-inheritance-tax

[greenmark]

So far as I can see IHT on farms is/was more favourable than other businesses.
But In general farm, hairdresser, garage. I don't care. Until you cash in the asset you should not be taxed. Thats just my view.

Business assets qualify for relief ... https://www.gov.uk/business-relief-inheritance-tax

So if you inherit and continue the business, no IHT to be paid? Help me here I'm still baffled.

[firlandsfarm]

So far as I can see IHT on farms is/was more favourable than other businesses.
But In general farm, hairdresser, garage. I don't care. Until you cash in the asset you should not be taxed. Thats just my view.

Business assets qualify for relief ... https://www.gov.uk/business-relief-inheritance-tax

So if you inherit and continue the business, no IHT to be paid? Help me here I'm still baffled.

Sorry greenmark but it’s over 30 years since I was involved with the details so I’m not going to delve in … IHT has a very complicated set of rules but this article may help … https://www.shortlands.co.uk/my-busines ... ance%20tax.

[greenmark]

Business assets qualify for relief ... https://www.gov.uk/business-relief-inheritance-tax

So if you inherit and continue the business, no IHT to be paid? Help me here I'm still baffled.

Sorry greenmark but it’s over 30 years since I was involved with the details so I’m not going to delve in … IHT has a very complicated set of rules but this article may help … https://www.shortlands.co.uk/my-busines ... ance%20tax.

I am very motivated by this issue.
To use a farm as a tax avoidance is wrong.
To tax a genuine inheritor of a farm that does carry on the business is staggeringly wrong.
As you've said farming is massively capital intensive. Huge assets but flipping hard to generate profit.
I guess my stance is if an inheritor wants to cash in then they pay IHT as per everyone else.
To tax an inheritor when they want to continue running the farm as a business is really unacceptable for me.

It seems now that inheriting a farm will attract IHT and in a lot of cases render the business unviable.
It's disgusting. I'm shocked.

[firlandsfarm]

To use a farm as a tax avoidance is wrong.
To tax a genuine inheritor of a farm that does carry on the business is staggeringly wrong.
As you've said farming is massively capital intensive. Huge assets but flipping hard to generate profit.
I guess my stance is if an inheritor wants to cash in then they pay IHT as per everyone else.
To tax an inheritor when they want to continue running the farm as a business is really unacceptable for me.

It seems now that inheriting a farm will attract IHT and in a lot of cases render the business unviable.
It's disgusting. I'm shocked.

You can’t just “use a farm as a tax avoidance” it has to be active and viable (though the latter used to be a bit soft in my day as it only required one profitable year per 5, don’t know if the current requirement is still the same).

[ForFolksSake]

Farmers' protest gets go-ahead as Labour slammed over crippling inheritance tax
Farmers prepare 'militant' action over tractor tax threatening to destroy rural Britain
Looks like there could be a Turkey shortage for Xmas

[Archery1969]

Farmers' protest gets go-ahead as Labour slammed over crippling inheritance tax
Farmers prepare 'militant' action over tractor tax threatening to destroy rural Britain
Looks like there could be a Turkey shortage for Xmas

Isn’t there a plan for thousands of them to drive their heavy machinery to London and block all roads around parliament. Although that might not make much of a difference while driving in London?

[greenmark]

Farmers' protest gets go-ahead as Labour slammed over crippling inheritance tax
Farmers prepare 'militant' action over tractor tax threatening to destroy rural Britain
Looks like there could be a Turkey shortage for Xmas

"Tractor tax" is such a feeble definition of this issue.
For inheritors they have an entire array of expensive machinery, tractors are pretty minimal costwise. This narrative is still all rhetoric and little detail.
My understanding now is -- inherit a farm and regardless of whether you do or don't continue to run it you will pay IHT. Forget the allowances, any kind of tax inheriting and running a going concern is wrong.
The subsequent owners after the inheritors have sold up becuase the farm has become unviable due to IHT will be grinning.