To think that parents cannot leave money to severely disabled offspring free of IHT

I have a daughter with a mld so I do understand. I wouldn't worry too much about the future. You can't control it. You might have to go into a home and sell up and there might be nothing to leave anyway. My daughter doesn't particularly need money anyway. Her sister, who needs to buy a place with her boyfriend in sw London, does!

They are supported with a very similar benefits system to the UK and since 2003 a health insurance system too.
The support actually far exceeds the UK with all elderly care funded through their health system, no one has to sell their home to pay that.
The difference is it’s a wealthier country overall because wealthier people live and pay their taxes there. In some cases because wealth has been passed on, grown and people are encouraged through an equal tax system to climb the ladder without losing out once you pass a certain tax bracket.

But the residents of Guernsey are not supported in the same way. So the lower earners are hit harder. I understand your point but Guernsey is not a good example.

The point is
If a country makes itself more desirable for the wealthy to reside in then they stay, pay more in taxes ( as high earners don’t receive benefits ) and overall benefit the system. Thus there is more in the pot to support lower earners and infrastructure.

Well it is relevant, as it’s a different system, one to encourage the wealthy to reside there, thereby increasing the tax burden on each resident and making more revenue amongst a lower population.

The UK has less wealth spread between more people and has difference services to fund (health and social care not least). So it’s a comparison of apples and oranges. The two taxation policies have different goals.

I don’t see how that’s relevant to my post highlighting the long term effects of removing certain taxes.

Sorry I haven't read the thread so sorry if this has been covered already, but you need to set up a trust for his inheritance. He can then ask the trustees for money for eg a holiday. But he mustn't inherit directly or it will affect his benefits, and he will have to self fund until the money runs out. Contact Mencap for a copy of their wills and trusts pack.

Removing a tax only lowers tax income in one sense.
What its does in the long term is increase wealth and encourages wealthier people to stay or even move to your country.
Guernsey has a one off income tax of 20% for everyone with a £13k allowance.

There is no increase for those who earn more thus people do not find themselves on the margins of a higher tax rate and worse off.

They also have no capital gains tax and no inheritance tax.

That also assumes you actually get the value of the crop in the ground too.

What you get for your harvest isn't determined until it's harvested and back dry in the shed.

You have a bad harvest and suddenly you have a huge cash flow issue to buy new seed. Tractor repairs can cost tens of thousands of pounds.

• majority of small farms

@Noras it really doesn't! If anything it proves the exact opposite!
If for every million pounds over threshold it's £200k in tax.
So for easy numbers to 'only' have 500 farms affected that would mean that the average value of those farms was at least 8 million.

There is a heck of a lot of farms which would be valued between 3 and 8 million! I'd go as far as to say that the majority of farms would fall into that bracket.

So no not small numbers at all!

So below is from the times highlighting the affect on a medium sized family sized farm that will likely be forced to shut down. Income average is £123,000 - although some years much lower - which is wages for 3 people and what is required for reinvestment in the farm.

hardly a mega farm…

"However then you will loose the main residence relief which increases the allowance to 1 million for a couple to include the additional £150,000 main property relief."

I think there's a way of carrying forward/protecting main residence relief if you downsize - from a radio piece I heard a week or so ago.
If your so concerned about not paying IHT on your millions, pay for a financial advisor.

@Noras The estimated income from the inheritance tax change is approximately 500million per year

We are currently giving over 535million to develop agriculture in other countries. The largest amount going to Brazil which is the 11th largest economy in the world.

So on the one hand out government is destroying British agriculture whist giving handouts to foreign agriculture.

So NONE of the income from this policy change is going into the Uk economy!!!

I think you need speak to someone qualified to advise you on the best way to set up your son's inheritance, eg to put the money in trust for him as that won't count as 'his savings', meaning he'll be entitled to full benefits and thus will have the best of both worlds - full government support plus a trust fund he can use for extras - care or holidays or whatever he needs.

I like this idea. So sort of you pay for what you have in a way. I think that makes sense. It’s fair as you take responsibility for your own.

No I said that abolishing inheritance tax doesn’t automatically lead to income tax being increased - that’s a choice the government would make. There are others. Such as an overhaul of the NHS and the benefit system - in my opinion neither should go on as they are as it’s not sustainable

I think you'd need to leave it in a "trust" for him. - speak to a financial planner/solicitor x