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Post by dappy on Nov 20, 2024 16:42:51 GMT
The NFU article also talks about the rate being 40% whereas the actual rate is 20%. Weird.
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Post by equivocal on Nov 20, 2024 16:45:26 GMT
The NFU article also talks about the rate being 40% whereas the actual rate is 20%. Weird. No biggie; I'd ring the tax people we used to use, but they'd probably charge me! |
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Post by dappy on Nov 20, 2024 17:15:29 GMT
www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-reliefThis is the government summary which gives the same example and again confirms the £3m. Very odd that there seems to be other figures flying around for what should be factual information. My view for what it is worth is that if the last surviving partner can pass on a farm to his kids worth £3m with no inheritance tax and thereafter pay just 2% per year for ten years on the excess, that seems fair if not overly generous.
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Post by equivocal on Nov 20, 2024 17:25:53 GMT
www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-reliefThis is the government summary which gives the same example and again confirms the £3m. Very odd that there seems to be other figures flying around for what should be factual information. My view for what it is worth is that if the last surviving partner can pass on a farm to his kids worth £3m with no inheritance tax and thereafter pay just 2% per year for ten years on the excess, that seems fair if not overly generous. It's a fine point because, in most cases, there would not be a problem leaving the first deceased's estate to the children and the balance could pass on the second death.
If the Telegraph and the NFU are correct, existing widows or widowers might only have the £1m. That strikes me as unfair.
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Post by Zany on Nov 20, 2024 18:07:23 GMT
Farmland is indeed often worth millions. It's land. But unless turned from farmland into housing estates / business estates it's farmland, for feeding people and farming families are unfairly punished. Without farms, we starve. Farms wont go away, food will go up. |
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Post by montegriffo on Nov 20, 2024 18:13:37 GMT
Farmland is indeed often worth millions. It's land. But unless turned from farmland into housing estates / business estates it's farmland, for feeding people and farming families are unfairly punished. Without farms, we starve. Farms wont go away, food will go up. In a lot of cases it really needs to go up. |
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Post by dappy on Nov 20, 2024 18:15:19 GMT
I would be surprised if a husband and wife owned farm both alive now is exempt from IHT when they both die up to £3m but that relief only applies up to £1.5m in the same circumstances if say the wife died in June.
That though is a level of detail beyond me.
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Post by Zany on Nov 20, 2024 18:16:53 GMT
Its seems the big problem is the rich buying land to avoid inheritance tax. Hmm.
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Post by vinny on Nov 20, 2024 18:18:53 GMT
Most farms are now worth millions because of the way land prices surged during the Blair and Brown years and then also through the 2010's and early 20's.
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Steve
Hero Protagonist
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Post by Steve on Nov 20, 2024 18:22:27 GMT
The OP is plainly nonsense. On the issue of farmers inheritance tax, everybody else pays 40% on assets over £1m (normally) payable immediately. Farmers are being asked to pay at 20% of assets over £3m payable over ten years interest free. They seem to me to be getting an amazing deal….. Certainly there are a lot of false figures being put about by people claiming to be afflicted farmers. If they really care about passing on their asset to their sons and daughters then the bleeding obvious thing to do is give them shares in the farm while their life expectancy is still good. Seems some of these farmers want to keep it all in their own name til their last breath while pretending it's a family asset. That said this was a stupid move by Reeves in a stupid dogma driven budget that gives all the wrong messages to a strategically important industry. |
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Post by equivocal on Nov 20, 2024 18:24:27 GMT
I would be surprised if a husband and wife owned farm both alive now is exempt from IHT when they both die up to £3m but that relief only applies up to £1.5m in the same circumstances if say the wife died in June. That though is a level of detail beyond me. The reason I asked the question was because the article I read suggested the £1m didn't follow the same rules as the £325k and the £175k and it seemed a little odd. The NFUS article, which I only saw today, suggests the same thing.
No dout it will all become clear soon enough.
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Steve
Hero Protagonist
Posts: 3,633
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Post by Steve on Nov 20, 2024 18:27:23 GMT
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Post by equivocal on Nov 20, 2024 19:23:53 GMT
Then this from a firm of accountants suggests the Telegraph was right on the spouse point:
The position then gets more complicated in the case of a married couple, as assets can pass tax-free to the survivor who can also inherit the unused proportion of their spouse’s £325,000 nil rate band. Unfortunately, the new £1 million APR and BPR limit cannot be passed to the surviving spouse, and any wills that leave all assets to the survivor may not be as tax-efficient.
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Post by AvonCalling on Nov 20, 2024 19:24:41 GMT
Farms wont go away, food will go up. In a lot of cases it really needs to go up. Would you elaborate please? |
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Post by vinny on Nov 20, 2024 19:33:44 GMT
Farmland is indeed often worth millions. It's land. But unless turned from farmland into housing estates / business estates it's farmland, for feeding people and farming families are unfairly punished. Without farms, we starve. Farmland has been falling in price due to the difficulty of making money out of it. Many small farms barely earn enough to pay income tax. And taxing families for inheriting them will do a lot of harm. Death taxes should be illegal. |
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