9:43am
9:43am, 20 Nov 2024
11,835 posts
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Fields
It’s just the rich refusing to pay tax as always How did they get their land in the first place? Usually they fought for it. Often they were slave owners. The landowners are the sort of people that other countries introduced to the guillotine and the gulag. The UK hasn’t ever had a revolution so we are stuck with them. |
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9:44am
9:44am, 20 Nov 2024
11,836 posts
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Fields
wasn’t there a poster who pretended to be a farmer? We could have had their false insights into this story
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9:58am
9:58am, 20 Nov 2024
26,144 posts
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larkim
This IHT loophole - wasn't it created in 1985? And what happened before then?
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10:10am
10:10am, 20 Nov 2024
1,172 posts
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Non-runner
Interesting to see what other countries IHT rates are, many don’t have IHT at all. en.wikipedia.org |
10:25am
10:25am, 20 Nov 2024
18,143 posts
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jda
No, why? I was just correcting your use of 1 million in your post.
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10:25am
10:25am, 20 Nov 2024
18,144 posts
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jda
(@Chrisull )
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10:51am
10:51am, 20 Nov 2024
496 posts
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DaveG
I wouldn't read anything into accountants telling people they will be hit by the cap. The tax is paid when you die. An issue in all of this is you don't generally know when you will die. So if you predict you'll die in 20 years time, and add 20 years worth of inflation, then you might go over the £3m figure. But, some people predicting that will die earlier, and this assumes that the rate will never increase with inflation. So it's easy to think now that by the time you die your £2m assets will be worth over £3m. My parents use that logic to worry about IHT despite the fact they are nowhere remotely near ever having to pay it. This is what the anti-tax lobby does - tries to convince people they'll one day pay a tax which is reserved for much richer people to get wide public support for something that impacts few people. The issue isn't how many farms will theoretically pay this in future, assuming all things stay the same. It's how many farms are likely to pay it next year, with a death in the process. Very few farmers will pay IHT next year, and those who do will have had a bigger problem to deal with. |
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11:05am
11:05am, 20 Nov 2024
26,145 posts
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larkim
Dispassionately I think these two things are possible:- - Clarkson bought farmland to avoid IHT - Clarkson's experience farming and contact with farmers means he understands the IHT issue is an issue for some farmers and wants to advocate for it BUT I think the tide has turned a little in terms of the mood music away from the farmers because of his involvement and his previous statements about IHT. So he's not helping the "cause" at the moment. |
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11:16am
11:16am, 20 Nov 2024
26,146 posts
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larkim
I also don't think the issue is quite so much about the fact that tax will be paid, it's about where the actual cash comes from to actually make the tax payment. Because if the recipient of the inheritance simply gets land, buildings and some working capital to pay suppliers etc, that's where the business gets into difficulties. So I suspect what will come along is banks (e.g. NFU Mutual?!) that will start a scheme of loans to farmers, secured against the assets of the farm, which will pay the sums due as they fall due and repaid by the farmers through their profits over a period of time. A simple solution to the cashflow which avoids the farm's assets being broken up to pay the taxes. Not the same as the old "death duties" issue for the landed gentry and their piles in the country where the "old family home" had relatively little economic productivity to fund large payments of IHT when the cash was owed, and that resulted in quite a few of those properties being sold out of the "family" or in some cases donated to the NT. |
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11:44am
11:44am, 20 Nov 2024
18,145 posts
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jda
The issue is that the inherited wealth of some rich and well-connected people is (slightly) threatened. It’s not like their children aren’t going to get vast unearned windfalls anyway, it’s just that the windfalls may be slightly less vast. |
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