7:02am
7:02am, 31 Oct 2024
6,084 posts
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Cheeky’s Dad
jda wrote: I thought I heard someone say that 75% of farms wouldn’t be affected by the IHT change but may be wrong on that. And it could be misleading anyway depending on what counts as a real farm (vs hobby). The government claim only 2000 estates will be affected “Victoria Vyvyan, president of the Country Land and Business Association…added that it was estimated 70,000 farms could be adversely affected by the £1m cap:” bbc.com I don’t have statistics to prove or disprove either figure but a casual look at farm & land prices would suggest the latter number is closer to reality |
7:47am
7:47am, 31 Oct 2024
18,025 posts
|
jda
TBH it makes little difference if there’s a huge number of hobby farms well under the threshold if a large part of the nation’s food production is included. However the 7 year gifting thing still applies and anyway if an average 2 million farm can’t handle a 10% tax on a generational basis (1 million exempt and the next million at 20%) then perhaps it does need better management. |
7:51am
7:51am, 31 Oct 2024
29,887 posts
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richmac
Nationalise farming that would answer a lot of problems. Why are you throwing things at me? |
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9:20am
9:20am, 31 Oct 2024
6,085 posts
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Cheeky’s Dad
jda wrote: TBH it makes little difference if there’s a huge number of hobby farms well under the threshold if a large part of the nation’s food production is included. However the 7 year gifting thing still applies and anyway if an average 2 million farm can’t handle a 10% tax on a generational basis (1 million exempt and the next million at 20%) then perhaps it does need better management. I’m sorry but what you say is unclear or simply misguided in a number of fundamental ways. 1. For the 7 year gifting rule to apply the donor cannot retain any material benefit from the gift. If you give your house to your child, but continue to live in it, you would have to pay them market rent for the rule to apply. Hard to see how this could work where the farm is both home and livelihood 2. I would be interested to see your evidence that “hobby farms” under the threshold produce a large proportion of the county’s food supply 3. Your suggestion that farms are mismanaged is just a sweeping generalisation that does you no credit. The average farm income for lowland livestock farms in 22/23 (the last year for which figures are available) was £21,600. That’s farm income not per person and the overwhelming majority of farms have more than one person working on them, even if not full time. How do you expect businesses with that level of income to have the sort of spare cash you describe? Yes many farmers are considerably better off than that and yes, economics of the whole farming sector are broken but please don’t fall into the trap of thinking farmers are either bloated toffs who can spare the cash or incompetent peasants. Sorry but the suggestion that this makes “little difference” is blindingly ignorant. Parts of the farming industry are in an existential crisis. If you care about where your food comes from, how it’s grown and what it costs or indeed the rural environment this really does make a difference. |
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