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General UK politics VIII - The Last Tory

And a nice antivax organisations providing some of the protest materials

#together with that typeface is the branding of the HART group. COVID deniers in 2020 and 2021.

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The Don said:
Once again, a handful of rich people have managed to convince a much wider group to vote against their best interest.

At worst a few hundred farms a year will have to pay any inheritance tax and once passing the assets to spouses, allowing the assets to be passed during lifetimes, excluding the value of the actual farmhouse(s) on the property, double tax free threshold and so on have been taken into account, it's likely to be tens of estates annually.

"Farmers" like James Dyson and Jeremy Clarkson who are using agricultural land as a way to avoid inheritance tax have managed to convince small farmers to take to the streets. These small small farmers stand to gain significantly from extra spending on the NHS, benefits, rural infrastructure and so on and are at absolutely no risk of paying any inheritance tax (especially if they are tenant farmers).

The media support the narrative - either directly in the case of the right wing press or through "balanced reporting" in the case of the BBC. The message that it really is "Farming Fat Cats" who are the only people who are at risk of paying any inheritance tax needs to be communicated much clearer.
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I did notice that while there were the inevitable comments on the BBC article on the protests there were also a lot of people who were pointing out exactly this, so I don't think our delightful media is having it all its own way.
 
The Don said:
Once again, a handful of rich people have managed to convince a much wider group to vote against their best interest.

At worst a few hundred farms a year will have to pay any inheritance tax and once passing the assets to spouses, allowing the assets to be passed during lifetimes, excluding the value of the actual farmhouse(s) on the property, double tax free threshold and so on have been taken into account, it's likely to be tens of estates annually.

"Farmers" like James Dyson and Jeremy Clarkson who are using agricultural land as a way to avoid inheritance tax have managed to convince small farmers to take to the streets. These small small farmers stand to gain significantly from extra spending on the NHS, benefits, rural infrastructure and so on and are at absolutely no risk of paying any inheritance tax (especially if they are tenant farmers).

The media support the narrative - either directly in the case of the right wing press or through "balanced reporting" in the case of the BBC. The message that it really is "Farming Fat Cats" who are the only people who are at risk of paying any inheritance tax needs to be communicated much clearer.
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Since 1984, when Thatcher got rid of farmer IHT, there can't have been more than two generations at most of an active 'farming family' which didn't need to pay IHT. The guff about 'farming families' is one big red herring. As Will Hutton points out in a recent GUARDIAN article, of the half a million people IIRC who die every year in the UK, statistics show only 500 more people will actually actually paid IHT. [ETA correction]. Clarkson being questioned by Victoria Derbyshire - one of the best BBC broadcasters - tried to make out the BBC was some kind of left wing liberal woke outfit, when truth is, it is the opposite, with Davey being appointed by the previous Tory government. Clarkson now claims he didn't buy Diddly Squat because he wanted to pay Jack ◊◊◊◊ taxes but because he enjoys shooting. Presumably pheasants, grouse and other creatures. So much for the love of all that is countryside.
 
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Of course if the primary concern is to keep the farm in the family then presumably a shareholding could be gifted to the children while the parents are hale and hearty.
 
Just heard a guy on PM claiming that he would have to pay £400k IHT...

Quick back of an envelope calculation (tax threshold at £1m, around another £1m in allowances, so he wouldn't start to pay at 20% until £2m) shows his "estate" is up around £10m.

Surely he can afford a tax accountant?
 
The Don said:
Of course if the primary concern is to keep the farm in the family then presumably a shareholding could be gifted to the children while the parents are hale and hearty.
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Indeed, it's hardly onerous to retire and pass your farm to your kids when they are, say 40, and young enough to actually do something with it.

Also.

www.gov.uk

What are the changes to agricultural property relief?

Reforms announced at Autumn Budget 2024 will help raise money to fix the public finances while protecting small family farms from unfairly high inheritance tax.
www.gov.uk www.gov.uk

What was announced in the Budget?
From 6 April 2026, the full 100% relief from inheritance tax will be restricted to the first £1 million of combined agricultural and business property.

Above this amount, landowners will pay inheritance tax at a reduced rate of 20%, rather than the standard 40%. This tax can be paid in instalments over 10 years interest free, rather than immediately, as with other types of inheritance tax.

This is on top of all the other spousal exemptions and nil-rate bands that people can access for inheritance tax too. This means that two people with farmland, depending on their circumstances, can pass on up to £3 million without paying any inheritance tax.
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Even if you are a single person with no direct descendants, you still get to pass on £1.325M tax fee.

So on a £2M farm that is 6% tax and 11% on a £3M farm

To be paid over 10 years, so £13.5k per year for a £2M farm or £33.5k per year for a £3M farm.

I think that should be manageable.
 
FFS, I've just heard someone on R4's News claiming that 7 figure sums of IHT would have to be paid, meaning that the farm is worth some serious wonga and an accountant could surely be found...

There are some lying twats out there.
 
Carrot Flower King said:
FFS, I've just heard someone on R4's News claiming that 7 figure sums of IHT would have to be paid, meaning that the farm is worth some serious wonga and an accountant could surely be found...

There are some lying twats out there.
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The sum isn't very difficult. The lowest value would be £6.135M for a single person without direct descendants, rising to £8M for a couple handing it over to their children or grandchildren.

As you say, serious wonga.
 
As I remarked before, if your farm is worth millions then surely that is because it's capable of generating a decent return. And even assuming you fail to make any sensible arrangements to avoid the tax entirely, your descendents will have ten years to pay the tax.
 
FFS, if I was an accountant in a rural area I would be cancelling all leave until next April, budgeting for over-time, then ringing every farmer within a 10 or 20 mile radius and saying, "If you aren't too busy posturing with Clarkson and Farage, perhaps you might like to come and talk to me?"
 
I also note that our largest local land owner has been quiet...

He's the Duke of Northumberland and everything is well sorted: the Percy family are total strangers to IHT, as well as several other taxes (apparently).
 
jimbob said:
The sum isn't very difficult. The lowest value would be £6.135M for a single person without direct descendants, rising to £8M for a couple handing it over to their children or grandchildren.

As you say, serious wonga.
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And in the former case, with no direct descendants, who is there to care about the amount of IHT paid?
 
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