Anyone watching the Budget 2024?

[LadyofRutshire]

I couldn't find a thread on today's budget. Anyone watching live?

Because it's a better alternative to closing a business? At least for the employees and customers.

Very bad news for farmers and rural communities. Sad and worrying.

She said:

Finally, we will reform agricultural property relief and business property relief from April 2026. The first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all. But for assets, but for assets over £1m inheritance tax will apply with a 50% relief at an effective rate of 20%,
This will ensure that we continue to protect small family farms with three-quarters of claims unaffected by these changes.

Not sure if that helps you @HairyToity ?

Inheritance tax has always been an avoidable tax which is why it is a nonesense. The poor don’t have enough to pay it, the rich pay for advice about trusts and avoid it. Only the middle who pay taxes all their life and don’t expect to have enough end up paying it.
Time to take advice and update everybody’s wills. A great budget for the lawyers and tax advisers.

Unbelievable that people don't understand how this will affect farms.

It's like people don't understand that farms might need quite a lot of acreage

@Barney16 I’m reserving judgement but yes I have a sinking feeling that the devil will be in the detail. Also well aware that the next budget isn’t far away and they can very easily decide to make that harsher…

The exemption is £1m. There aren’t any working farms worth less than £1m.

This is a disaster of epic proportions for the countryside, and will see the end of family farms. And once gone, they won’t come back.

This will lead to a countryside is owned by large corporations for carbon capture and beaver sanctuaries. It’s a complete disaster for the countryside.

Might Tweet her and ask.

I done that during lockdown one. Tweeted Beth Rigby from Sky, she gave me great advice and skin advice 🤣

I don't think being expected to be transparent in your finances is violating your dignity. My experience of this is they are trying to stop massive fraud being carried out by gangs. If this is what it takes, and you are honest with your declarations, I don't see that as being onerous at all. It is public money that is being used and the government has a duty to ensure it is going where it should be.

The exemption is to the value of a million, then 20% after. Our farm is worth about 3 million so £400k we don't have, we need to find.

I know there are people in much worse positions, but it does mean we might have to sell farm rather than pass down to our children.

If you want to pass on the farm, it just means you have to do it well in advance of the previous generation dying.

Thanks for this. That's probably the part that I felt vaguely was missing. There was a piece on gilts on the BBC yesterday and it didn't sound at all hopeful.

I am watching with sound off and subtitles.

You have to be a very small business indeed to benefit from this... for businesses that employee 97% of people (or more) their costs are going up. For every employee on UK average earnings it works out at about £1k. So, that's £1k less in the kitty for payrises for many. Especially as growth forecast have been downgraded, and inflation forecasts upgraded. And growth was supposed to be a key strategy!!

Haven't many of us.

Why can’t you pass it down as a gift before you die?

🤣🤣🤣 love that if you do let us all know

Will affect the budget holiday market too, a rise in the tax per seat.

“ The first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all.”

Am I right in thinking this will be in addition to the existing £1m allowance?

That seems stark, especially considering RR own statement that 3/4 of claims/farms will not be impacted by the changes?

Don't know good question

I read they were switching to 1 budget a year?

Yep. I couldn’t quite believe what I was hearing. It’s just not true. There are NO working farms worth less than £1m, there just aren’t.

Who keeps going ‘ah!’?

I hope they can deliver what they are promising and don’t get suckered in to paying more than they planned like HS2

Then I suspect the devil (or saviour) is going to be in the details on this one...