Anyone watching the Budget 2024?

[LadyofRutshire]

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

Final salary pensions die because they guarantee to pay out a defined sum (defined benefit) for life.

Defined contribution pensions (most pensions outside of the public sector are defined contribution pensions) don't die since they are just a pot of money. When the money runs out it runs out but you can pass it on if you haven't used it all up.

Too late for that if they’ve exchanged.

If a farm is so small and niche that they can barely make enough is it really as valuable as to hit the million pound inheritance tax threshold? No idea as to the value of agricultural land !

Ah, right. Thanks for explaining.

CityAM are saying that "Until now a spouse’s pension pot could be inherited without any tax, but Reeves confirmed that this would change." Is that not right?

https://www.cityam.com/sweeping-overhaul-of-inheritance-tax-regime-revealed-in-autumn-budget-2024/

According to the detail in the official Government document "Those who exchanged contracts prior to 31 October 2024 are not affected by this rate increase." So you either pull out or gazunder if you haven't exchanged yet or you are not affected if you have already exchanged - crisis over

No - nothing is paid when the first in the married couple dies.

The survivor then gets the benefit of their spouses exemptions.

In total they can have £1m if there is a primary residential property involved.

So if there is only £600k in the estate it will all be IHT free under the current rules. But if he also has a pension and other assets so that his entire estate is over £1m then IHT is payable on the excess over £1m.

Tax reduction without corresponding reform of public spending

Those poor people who fly on private jets.

It seems so, if this is accurate.

Answer my own question - half of farms are smaller than 20 hectares, and 6000-8000 per acre of agricultural land ( watch the units ) means they won't be valuable enough to warrant inheritance tax anyway

That will be a question of fact in each individual instance.

Or you exchange contracts today !

£10, 000 an acre round these parts. Add in a farmhouse of at least 500k and you are soon there. A combine alone is probably worth 100k

It will include the farm house

Tone death

They will when you add in the value of the stock, machinery and housing.

Ita going to dramatically change the agricultural landscape

Sorry if I've missed it - has anything been said about entrepreneurs capital gains tax relief at all?

Yes I meant that typo, it was that bad.

Well I listened to it and that isn't what she said. She said nothing about removing the spousal exemption. She literally tried to hide the pension change by saying one line on it.

If she has also removed the spousal exemption then that is massive. It would have a fundamental impact on people's finances

Unless they change the rules about this then, no, he will not. Absolutely anything you leave to a spouse is disregarded for IHT purposes.

If you leave everything to your husband then, when he dies he can leave up to £1 million to your children without paying any IHT

No @ShakerRoll I don't believe it will be. @user8754387 has said everything I would have done already. I'm not a tax adviser. It might be worth you and your husband getting some advice. A one off consultation shouldn't cost that much and it would be better than getting advice from randoms like me on Mumsnet. Said and intended in the nicest way possible, as I recognise your anxiety around your situation.

I do have pets, and realise how rare decent vets are, but I'm amazed by this - a pay rise in the hand v. a discount on bills that may never even happen? I'd take the pay rise every time, and put it towards my insurance.

Which jobs that require the same level of training ? Why don’t you do it if the pension is so amazing. Clearly as there are 40,000 nursing vacancies neither the pay nor the pension is great.

As it should. Farming is an occupation where you need to live on the spot to look after the livestock and be out in all hours because of the need to get time-sensitive things like harvesting done when weather and light conditions permit. Maybe the way through this is to tighten up the planning laws so that nobody would want to buy a small farm except for someone else committed to farming the land, possibly in conjunction with other small-scale sustainable enterprises and activities.