To support UK Farmers

[TheHateIsNotGood]

And due to KS's inability to face them in Wales today they are now thinking of going on strike. Because the govt are being too stubborn to reconsider how they apply IHT on working family farms. By all means close the loophole that allows the 'landed gentry' to take advantage of the agricultural exception but not with so blunt an instrument.

I was hoping to add a post to an existing thread but there isn't one despite it being headline news today.

Treasury have a very good reputation for assessing the impact of tax changes, and claim that approximately 500 farms will be caught up in the new scheme. History tells us that farm prices began rising disproportionately after IHT on farms was dropped in 1984c so with the new tax farm values may rebalance.

How many farms do you think will be caught up in the new IHT, and why?

Are you serious? Big corps will buy the land. Why? For carbon offsetting, so they can reach their stupid "net zero targets" utter nonsense.

Large house building corporations will buy it, why? So they can offset their BNG requirements off site somewhere else so they can cram more houses on their more profitable sites.

Solar farms, "re wilding" celebrities

That's who will buy up these farms.

@poetryandwine agricultural land has risen in line with ALL property prices!

IHT relief cannot be blamed for that. Any urban fringe farms value will have risen due to the potential for development too.

The true number of farms impacted is impossible to say just yet. But as property prices continue to rise you can be sure as damned the cap won't rise with it. So within a decade or two a very high percentage will be

Well@notanothernamechange24 we don’t know what the trajectory of property prices will be. So your statement is only a guess. I make no judgement on its accuracy; no one can.

It has been mentioned upthread that farm prices have been inflated as farms have been purchased as an IHT shelter.

Back to my question: how many farms do you believe will be affected now by IHT?

@poetryandwine did you actually read my previous response?
Clearly not!

And the trajectory of property prices is pretty clear! Baring a few short periods they have only ever risen!

Labours position is pretty clear!

I did read your reply, @notanothernamechange24 . You ssid that agricultural property has risen in line with all property. I pointed out that PP’s have said otherwise, then asked my original question again. Could you please answer it?

@poetryandwine I did answer it is there in black and white!!!

*The true number of farm impacted is impossible to say just yet.
*
There I have rewritten it for you 🙄 it's impossible to say how many people will die and therefore people inherit whilst this absurd law is in place.
It's impossible to know how many elderly farmers will kill themselves between now and it coming in to ensure their farm is kept safe. And don't say it won't happen at least 3 already have died.

I wasn’t being quite that literal, @notanothernamechange24

I just meant, do you think 500 is approximately the correct number?. You’ve declined three times to challenge it.

My points are that (a) no policy change is iperfect and (b) from 1894 to 1984 farmers managed to pay IHT. The economist Will Hutton had an excellent column yesterday about how we are all in this fiscal mess together, and necessity is the mother of invention. For example I noticed you were discussing the price of equipment above, whereas PPs have said that it may be sensible for small farms to share some of this.

IHT thresholds change with inflation. I just saw data from Nationwide showing that in today’s ££, the average house in 1990 would have cost about £190K. Today it is about £270K. Of course in 1990 that house cost much less, the difference is inflation. So property values do truly rise, but nothing like as much as it feels like with inflation.

The percentage of households subject to IHT increases very, very slowly because IHT thresholds rise periodically. There is no reason to think farms will be different.

@poetryandwine I have told you repeatedly it is impossible to know right now! Lots of farms will barely even know the true value of everything themselves.
And values will change. Numbers of stock in the field will change, the amount of grain in the shed will change. Prices rise and fall. There is too many variable factors to list or take into account.
The idea of farmers sharing equipment is laughable! Farmers have the equipment they need and use. Most of it will be being used on a daily if not weekly basis. The tractor will be used every single day for example. This isn't kit being sat in sheds for months this is stuff being used.

And the stuff that isn't used as frequently is sometimes shared, or they have contractors in to do some of the work. But other things you need your own.
When it's time to bring the harvest in. It's time for your neighbour to be bringing his in too! Windows of opportunity between breaks in the weather can be too short.

Why is a flat in Mayfair worth more than a flat in Hartlepool?

Capital gains tax will need to be paid when the farm is sold

Capital gains tax would be due when the farm was sold.

The majority of people in the uk eat meat and should have the option to do so if they wish.

Nope you'll have your daily dose of high nutrient sludge no. 6 and be grateful for it.

I support farmers generally but not in the matter of taxation which should apply to them as much as anyone else.

The government understand it alright.

I don't see why they should be exempt. The rate and threshold they will be paying is far more favourable than most people have to pay.

I've never met a poor farmer.

Where in the country can you buy a farm, a proper working farm that you can make a living from for £1.3 million?
Land round here is £10000 per acre. No one is making a living off 130 acres without another job.

Yes you obviously don’t know the value of livestock. I don’t know any dairy farmers who can buy a cow for £1000

@Farmersweeklyreader but land is expensive because so many tax dodging chancers have been buying up. I do feel they've spoiled things for everyone and need weeding out to allow land values to return to a proper level.
Trouble is under the budget's proposals they'll still get off lightly with 20 per cent payable in IHT

And yes, I'm afraid I know a very wealthy person who came into a very large pit of money and who was advised to buy lots of land, which she did. For 'rewilding' or rather tax purposes.

To be honest, it's a bit of a joke that farmers are protesting in London today, of all places - where millions of people in eg. three bed terrace houses are liable for IHT due to house price inflation.

... I know a very wealthy person who came into a very large pit of money and who was advised to buy lots of land, which she did. For 'rewilding' or rather tax purposes.

Likewise. The land was sprayed to kill the grass, then nature moved in. Good agricultural land lost and replaced with field of thuggish weeds.

Yep!
The level of ignorance in this thread about the cost of farms is crazy. Just shows how far removed from food production most of the population are.