The Budget 2025

The land owners being taxed on bequeathment. We have come a long way from the feudal times when land owners taxed the poor.
 
northernrower said:
This is why many farmers struggle and do end up walking away. It's incredibly tough to get by, however most carry on as it's all they've known. Plus, they're doing a job for the country.

For example, where would you rather your meat came from; a family run farm or a major farming corporation?

This IHT decision is going to cripple 70,000 small farms.
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If people could earn say £80k a year instead of £30k a year they would be helping the country more by paying much more tax. We are not short of foodstuffs, in fact we probably have too much food, but we have a shortage of cash.

Many landowners are diversifying now, I visited a local from to me (Ross on Wye) and the farmer in one field grows grapes. he grows wild wheat (sold in some M&S and Waitrose bread), he grows vegetables which are turned to sauerkraut on the farm, keeps some chickens and rhias whose eggs he sells in a shop on the farm. He had a couple of holiday pods on the farm too. He is growing soft fruit but quite wildly. He rents out an outbuilding for a landscapers vans. His father bought the farm 35 years ago and just grow potatoes, but his father was damaging the soils through monoculture and use of too many chemicals as farmers were taught to then and there taught to intensively farm which can be unsustainable. The younger farmer told me he paid top rate of tax so much be earning £120k plus. His wife helps full time and he pays people to help him. The younger farmer now helps other farmers improve their income. One common problem he sees is farmers spending too much on equipment say new tractors which are incredibly expensive. Obviously not diversifying is a problem too and no farming in line with nature. I suspect many farmers think he is bonkers, but he is the one earning the high income.

The avoid Inheritance I am sure families can legally split big farms up, but have them operating as one. It all else fails raise finance to pay IHT by mortgaging some of the farm. Say on a £3m of farmland - take out a 800k mortgage say over 30 years - OK it has to be paid back but it keeps all the land in the family. £3m worth of land would be a 300 to 400 acre farm on average land and location - that's big for a family farm.
 
Redwurzel said:
If people could earn say £80k a year instead of £30k a year they would be helping the country more by paying much more tax. We are not short of foodstuffs, in fact we probably have too much food, but we have a shortage of cash.

Many landowners are diversifying now, I visited a local from to me (Ross on Wye) and the farmer in one field grows grapes. he grows wild wheat (sold in some M&S and Waitrose bread), he grows vegetables which are turned to sauerkraut on the farm, keeps some chickens and rhias whose eggs he sells in a shop on the farm. He had a couple of holiday pods on the farm too. He is growing soft fruit but quite wildly. He rents out an outbuilding for a landscapers vans. His father bought the farm 35 years ago and just grow potatoes, but his father was damaging the soils through monoculture and use of too many chemicals as farmers were taught to then and there taught to intensively farm which can be unsustainable. The younger farmer told me he paid top rate of tax so much be earning £120k plus. His wife helps full time and he pays people to help him. The younger farmer now helps other farmers improve their income. One common problem he sees is farmers spending too much on equipment say new tractors which are incredibly expensive. Obviously not diversifying is a problem too and no farming in line with nature. I suspect many farmers think he is bonkers, but he is the one earning the high income.

The avoid Inheritance I am sure families can legally split big farms up, but have them operating as one. It all else fails raise finance to pay IHT by mortgaging some of the farm. Say on a £3m of farmland - take out a 800k mortgage say over 30 years - OK it has to be paid back but it keeps all the land in the family. £3m worth of land would be a 300 to 400 acre farm on average land and location - that's big for a family farm.
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There is a big difference between income and profit. The £30k figure quoted has to be after expenses. Farmers don't bother cutting their costs because it is all expenses. They are massively building wealth while paying very little taxes and often being subsidised as well. Clever accounting is not the same as poverty. If they are genuinely only making £30k off £3m of land then they'd be far better selling up and living off the interest and letting someone else try be productive with the land.
 
Redwurzel said:
£3m worth of land would be a 300 to 400 acre farm on average land and location - that's big for a family farm.
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£3m comprises of buildings, machinery and land.

Trust me, it's not big for a family farm at all. The amount of land is about half what you mention.
 
What’s wrong with this picture??

“After investing in 60 buy-to-let properties Julie and John fear that their dream to sail around the world may never materialise, and now face being forced to sell their boat to pay for their retirement. “We feel we have been hung out to dry”

I will spend the rest of today auditioning very tiny violins.
 
Boro.Fur said:
I've posted the X version as well just incase people can't open Threads👍

https://twitter.com/x/status/1851956384167776598
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The most interesting part of that thread is the table at the end which shows not only that 73% of farms would have been completely exempt from the new IHT rules, but that a further 20% would only be marginally affected too. That’s 93% of all farms in the UK.

The median value of agricultural land for that next 20% was £1.47m, which would have resulted in an IHT liability of £94k under the new rules. Taken together with the Residential Nil Band Rate of a further £1m for any farmhouse and other assets, that means a total IHT liability of £94k on total assets of £2.47m, an effective tax rate of 3.8%.

Oh, and the £94k can be paid over 10 years, so £9.4k per year for 10 years on a £2.5m business.
 
Billy Horner said:
The most interesting part of that thread is the table at the end which shows not only that 73% of farms would have been completely exempt from the new IHT rules, but that a further 20% would only be marginally affected too. That’s 93% of all farms in the UK.

The median value of agricultural land for that next 20% was £1.47m, which would have resulted in an IHT liability of £94k under the new rules. Taken together with the Residential Nil Band Rate of a further £1m for any farmhouse and other assets, that means a total IHT liability of £94k on total assets of £2.47m, an effective tax rate of 3.8%.

Oh, and the £94k can be paid over 10 years, so £9.4k per year for 10 years on a £2.5m business.
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OI, stop doing a reaosnable and factually correct breakdown of the budget. I want to be angry because Clarkson has told me to be
 
SmallTown said:
OI, stop doing a reaosnable and factually correct breakdown of the budget. I want to be angry because Clarkson has told me to be
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Yes but in fairness Clarkson has a personal fortune of about £50 million so although he is such a regular guy who speaks for us all, Rachel Reeves will be making him nervous
 
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