To ask why you support the farmers, regarding inheritance tax?

[WheresFluffy]

Just that, really.
I'm interested to know why people support, or not, the farmers regarding the inheritance tax changes.

YABU - it's been done to death
YANBU - learning why people believe things is important.

I support the farmers. I’m a solicitor and used to help many with their family partnerships. The younger/next gen of a family farming partnership tend to accept very low salaries/return for their efforts as they know they will Inherit the farm and it’s a home and business for them in the future. Many are asset rich and cash poor. Often they have to pay out siblings as well.
I think if they are taxed too heavily on death of the parents they won’t be able to keep the business going. This will disincentivise alot of younger/next gen farmers and it’s already a struggling industry.

Op there are several threads running on this subject.

I don’t support them, but thank you for asking. 🙂

To pay the inheritance bill they will have to sell their land. As soon as you start spilling up land it becomes even less profitable. Food/agriculture is needed and we shouldn't be relying on imports although we are likely to see a shift towards more imports and less domestic production when farmers need to sell their asses and home to pay the bill

Farming exists on the assumption the farm itself will be passed on down through families. They make fuck all money typically so as a business are deeply unattractive to anyone except the poor fuckers born into it.

this tax will fuck the whole industry into the hands of corporations and our food will be destroyed for profit even worse than now.

I support them. Farming is not a “normal” business and should not be treated as such. Flogging land to pay tax reduces the viability of farms (which we need for food) and only helps land banking property developers.

I would support IHT being levied on agricultural land where the primary business of the owner is not farming. This would tackle any “abuse” of the exemption by the likes of Dyson. No idea how that would work in practice, but they should at least have tried something less blunt.

Ps I’m not a farmer but grew up around many. I’ve no skin in this other than fear for my children’s food supply and the countryside.

Anyone who doesn’t support them doesn’t understand farming or the food economy. Simple as that.

I support them because I know them. My DP works in the Industry and this will have big ramifications. Not every farmer is a millionaire, despite what MN thinks.

I’d support IHT on the sale of inherited farms. Not on the inheritance itself.

The farmers will moan and complain and then the very few that actually have to pay will pay it, the overwhelming majority will realise it doesn't actually include them, and life will continue as normal. Those impacted might need to upgrade the Land Rover every two years rather than every year for a while, but they won't end up impoverished.

Wouldn't they just make over shares to the younger generation earlier in life? What do other family businesses do?

Well no it won’t. Most won’t be impacted, those that do will have farms over £3 million and will pay and they have many years to pay it off anyway. They’re not all going to suddenly keel over and die off in their hundreds either. I totally support it.

THIS IS SO IMPORTANT. Food security is of massive importance to any nation state. The IHT attack is underpinned by a desire to kill off small farms in order to achieve net zero. Vince Dale quoted in the papers at the w/e saying people need to eat less meat and drink less milk. How better to achieve both of those things by making them so costly people can't? The land is also needed for solar farms.

This 👍

I support farmers generally but not on this. There are ways around this - they need to make the farm a limited company and make the kids directors and Voila - tax issue avoided.

No they don’t, they have 10 years interest free to pay it off. It’s only farms over £3 million for those owned by a couple. They can and should pay.

@JoanCollected I’m a farmers daughter and also agree that IHT at the full rate would be entirely appropriate and acceptable for that scenario.

I support them to an extent, a more nuanced approach is needed - hobby farmers/people with horses for fun and wealthy bankers who’ve bought farms to evade tax shouldn’t be exempt from any of it. Families for whom it provides 80% or more of their income should. Maybe also stricter rules about holiday property etc too would be fine, but agriculture in its pure form should be exempt.

The £3m figure isn’t true in all cases. It depends if the farm is held by a couple who are married or in a civil partnership passing the assets to children or grandchildren. In some cases the figure may be lower eg a single person passing the farm to a nephew or niece.

I am sure it wasn’t beyond the wit of HMT /HMRC to set a requirement that the farm was exempt if passed to a relative and operated as a farm for x number of years after it was inherited. I assume farmers need to fill in various official returns each year etc which would allow the continuing operation as a farm to be verified.

Not hard to get married if necessary is it.

I support them because dh used to do the accounts for farmers and most were living right on the edge due to it being so weather dependant and other factors that can't be controlled. It's actually quite an insecure income. They also have a high rate of suicide as it's so stressful. Also, we need to grow our own food in this country. Farming needs to be valued.

They are and they get support. Doesn’t mean they can’t pay inheritance tax like everybody else.

If you think food prices are high now, wait until your food has to be imported. Unless of course you don't mind GM foods and slack hygiene regulations. That's without looking at animal welfare.

It's a fallacy that land sold will remain productive. Prime arable is already being sold off for large solar farms. Add in developers landbanking, hobbyists, one-off housing, etc etc.

Family farms plan on a generational basis with long term investment for very little financial reward with tight margins. If you have to sell land or livestock which makes the farm unviable, why bother? I've worked in farming, but I wouldn't be a farmer for anything.

Not every has a partner. What are they supposed to do - marry a random stranger?

You mentioned civil partnerships