Anyone watching the Budget 2024?

[LadyofRutshire]

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

Many, many farms in NI are worth far less.

We don't own it , in-laws do. If they gift it to us there will still be capital gains tax on the gift, and it's not our decision to make, it's their decision. We can't tell them what they do. They will hopefully take advice.

She said that only 1 in 4 farms will be affected by this?

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.

The profits are my husbands salary which, last year, was less than a train driver.

That's a salary for someone with over 25 years experience, who is a specialist in his field and frequently consults on difficult cases across the country. He could walk into any role across the country and earn double what he does. But he doesn't - why? Because he owns two vet practices that are some of the few that have not been swept up by 'big companies,' (despite the VERY lucrative opportunities that have been presented to him). Big companies charge far more than he does.

But he and the practices are going to be buggered by this budget - because ultimately it's either he sacks people, or he takes home even less than he already does (not an option when you have kids and bills) or he increases fees on all patients.

Could theoretically if you live another seven years, but could be classed as deprivation of assets. And it has to be an unreserved gift, so you couldn't just carry on as before, you are not allowed to continue to benefit from it. I'm sure there would be ways, but not that easy.

It does annoy me that people routinely talk of a £1m IHT exemption- not everyone is married.

I agree family farms will not cope with IHT, it’s a disaster. Huge companies will buy them up. Imagine just a few companies in charge of base food production, it’s bad enough now with food manufacturing owned by so few companies.

7 years before you die

Working farms.
You need enough acreage and land quality to feed a family. It can’t be done on 25 acres with a few rare-breed pigs and a chicken coop, like on the reality shows.
A family can’t live on less than 100 acres without outside full time incomes.

If his 2 practice, 50 person business can't afford a 2-3% increase to staff costs then it can't have been doing very well in the first place.

I mean, was he not planning on giving anyone a pay rise next year?

I've heard of a farmer doing this, and then the child dies before the parents. It's hard to predict when someone will die.

I'm not the person you asked that question of but I really don't understand the point of the question.

A person earning £60k a year, and paying 5% into a pension, will (at the moment) pay 17.59% in income tax and 5.35% in NI for a total deduction of 22.94%

A person earning the median full time wage of £37,400 and paying 5% into a pension will pay 12.44% in income tax and 5.31% in NI for a total deduction of 17.76%

She is either lying, or extremely badly advised and has not fact checked.

Either way, it’s just not true.

Jeremy Clarkson proved that point when he said he didn't make any money but at least he had his tv work to fall back on unlike all the other farmers.

Because then it becomes complicated. You have to pay rent to your kids at market rate for at least 7 years. Your kids then need to pay tax on that income. Say you have one child and you do the above. Child then gets married, immediately new SIL/DIL is entitled to half the property. If they get divorced then they could force sale of the farm to pay. I think many more pre nups may be insisted on in the future to protect family homes and businesses!

The government will reduce Right to Buy Discounts. Local authorities, meanwhile, will retain receipts from the sale of any social housing so that it can be reinvested into their existing stock and new supply.

This is a great move, I think. We desperately need a renewal and increase in social housing stock.

She really really hasn't thought through the farm IHT - all value is locked in land so there's no cash to pay IHT until the land is sold to someone outside the family. Perhaps that's what she wants, but then you lose all the farming knowledge and heritage. And only the very very rich will be able to buy large farms, which they won't want to do without any sort of tax break hook.

Lets hope she doesnt need the same support eh? Speaking of winter fuel i bet there will be a letter sent to my late dad telling him he is no longer going to be getting it. He died 3 and half weeks ago. Im following someone on Twitter whose late father got sent the letter and he died back in February.

I live in Yorkshire and they are doing a lot of good infrastructure for the local trains that def needs doing just heard her

We have worked and paid (a lot) of tax. We don't claim unemployment/ housing/ child benefit etc.

But we have had really good care from the NHS and a really good education for the kids.

I'm very happy for my taxes to be used on health and education.

I'm also very happy for more money to be spent on defence. So many threats in the world now, a bigger feeling of jeopardy with Russia than before.

Presumably the buget document will have references?

Did she just say she's reducing the threshold for RTB and making sure that the money goes to the council? !

Hallelujah. Sense at last

Right to buy should be completely abolished.

Thanks for the people who said its still free of Inheirtance tax HOWEVER the devil will be in the detail. Pension pots have always been looked at seperately. They were attractive because you could leave your pot to your children for example and they wouldnt pay any tax. That ability has now gone.

You needed to pass away before 75 years old for this to be allowed. That is clearly not controlled by anyone.

It was attractive and a way to pass on considerable amounts of money to others as opposed to your spouse. I know my DH wont live to 75. My Financial Advisor said to watch out for this one..

So it might not be as clear cut as others have said.

He's a vet and tries NOT to bugger over his customers. He's never been in it for the money. But he cannot afford a hit so I guess that's the answer, isn't it? Increase his fees.

Tough luck for those who already struggle.