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Post by dappy on Nov 20, 2024 19:36:30 GMT
www.channel4.com/news/factcheck/factcheck-inheritance-tax-on-farms-explainedChannel 4 with an admirably clear explanation. Let’s jump beyond this. It seems pretty clear that a married couple owning a farm can pass on assets when they have both died totalling £3m without any inheritance tax. Thereafter 20% is paid - payable 2% each year for ten years In any other walk of life a married couple can pass on £1m without inheritance tax . Thereafter 40% is paid - payable almost immediately. Is the new rules on farms 1) fair 2) unfair on farmers 3) still unfair on the rest of us but at least a step in the right direction
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Steve
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Post by Steve on Nov 20, 2024 20:12:49 GMT
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Post by montegriffo on Nov 20, 2024 20:31:34 GMT
In a lot of cases it really needs to go up. Would you elaborate please? Many small farms are struggling due to being underpaid for their produce. It's OK if you are a large farm with 1,000 acre fields and no pesky hedgerows to get in the way of profit but if you are the sort of farm that really supports biodiversity with small fields and lots of trees hedgerows, ditches and ponds you have to rely on countryside stewardship programs to help you stay above water. Small dairy farms for example make about a penny per litre of milk. The treasury would be better looking at raising taxes on the obscene profits the big supermarkets are making rather than squeezing farmers. Supermarkets make about 20p a litre on milk. |
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Post by dappy on Nov 20, 2024 20:49:32 GMT
Small farms are not going to pay inheritance tax Monte
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Steve
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Post by Steve on Nov 20, 2024 21:08:19 GMT
. . The treasury would be better looking at raising taxes on the obscene profits the big supermarkets are making rather than squeezing farmers. Supermarkets make about 20p a litre on milk. Urban myth alert ^ Do you need the difference between gross margin and net margin explained? Have you ever looked at the reality of just how low supermarket net margins are? Just 4% in the case of Tesco which falls to 3.13% after corporation tax. |
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Post by Zany on Nov 20, 2024 21:46:49 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. Arable land didn't surge did it? |
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Post by montegriffo on Nov 20, 2024 22:11:02 GMT
. . The treasury would be better looking at raising taxes on the obscene profits the big supermarkets are making rather than squeezing farmers. Supermarkets make about 20p a litre on milk. Urban myth alert ^ Do you need the difference between gross margin and net margin explained? Have you ever looked at the reality of just how low supermarket net margins are? Just 4% in the case of Tesco which falls to 3.13% after corporation tax. Tesco still managed to make £2.83 billion last year. £300 million up on the previous year. Total income from farming was £7.2 billion. |
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Post by Zany on Nov 21, 2024 8:36:29 GMT
Urban myth alert ^ Do you need the difference between gross margin and net margin explained? Have you ever looked at the reality of just how low supermarket net margins are? Just 4% in the case of Tesco which falls to 3.13% after corporation tax. Tesco still managed to make £2.83 billion last year. £300 million up on the previous year. Total income from farming was £7.2 billion. But you have to look at it in relation to running costs etc. That's important because it defines how finely balanced the business is. How little change it would take to turn profit into loss. |
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Steve
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Post by Steve on Nov 21, 2024 9:02:40 GMT
Urban myth alert ^ Do you need the difference between gross margin and net margin explained? Have you ever looked at the reality of just how low supermarket net margins are? Just 4% in the case of Tesco which falls to 3.13% after corporation tax. Tesco still managed to make £2.83 billion last year. £300 million up on the previous year. Total income from farming was £7.2 billion. Still just 3.13%. Anyone calling that excessive profit is in deep delusion. The supermarket business is intense competition driving prices down and that percolates back down the supply chain. If you want farmers paid more by the supermarkets then the customers will have to pay more, fact. |
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Post by vinny on Nov 21, 2024 9:06:10 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. Arable land didn't surge did it? Actually with planning permission it's worth many millions. So yes, it did. |
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Post by dappy on Nov 21, 2024 9:30:19 GMT
www.savills.co.uk/landing-pages/rural-land-values.aspxActually looks like farming land did spike from around 2000 (dates are a little hard to read) before dropping back a little from its peak over the last few years. That has absolutely nothing to do with planning Vinny. Of course people who don't currently own farming land will usually only acquire it if they can earn a good financial return from it - which rather flies in the face of the "poor farmers can't afford IHT" argument. Farm land also increased in value as a fair but was purchased by high net worth people as an inheritance tax shielding device, a loophole the government is starting to close.
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Post by montegriffo on Nov 21, 2024 12:38:55 GMT
Tesco still managed to make £2.83 billion last year. £300 million up on the previous year. Total income from farming was £7.2 billion. But you have to look at it in relation to running costs etc. That's important because it defines how finely balanced the business is. How little change it would take to turn profit into loss. So imagine what paying 40% of your total assets would do to a business? When do the Supermarkets pay inheritance tax? |
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Post by montegriffo on Nov 21, 2024 12:48:10 GMT
Arable land didn't surge did it? Actually with planning permission it's worth many millions. So yes, it did. With planning permission it is no longer arable land. |
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Post by vinny on Nov 21, 2024 13:00:25 GMT
But, the owners of any arable land can get planning permission and the value of land definitely did go up significantly during the Blair, Brown, years and also, at a slightly slower rate but still a big increase during the 14 years of Cameron, May, Johnson, Truss and Sunak.
A family that has owned land for generations, is going to get clobbered for no other reason than inflation, when the next generation of that family inherit land that is now worth millions.
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Steve
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Post by Steve on Nov 21, 2024 13:52:13 GMT
But you have to look at it in relation to running costs etc. That's important because it defines how finely balanced the business is. How little change it would take to turn profit into loss. So imagine what paying 40% of your total assets would do to a business? When do the Supermarkets pay inheritance tax? Schoolboy error, citizens pay inheritance tax. As have the beneficiaries of countless Tesco shareholders estates. And do you need it explained that the planned agricultural asset inheritance rate of 20% isn't 40%? |
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