Random Irritations

[PaulMdj]

The situation surrounding agricultural property and the separation of different assets such as land and residential buildings can make this somewhat more complex.

However, I agree that many could and should consider similar action.

But this does not help in the short term as successful use of trusts will likely require the settlor to survive for a number of years after establishing the Trust.

Again, I don’t believe you’re correct, my son is covered from the day I signed the documents. Whole process took 3 months to sort, from initial meeting to signing the trust deeds.

I agree it can be complex, but there is a lot of misinformation out there and the first step is to speak to an expert.

 

[Rlburnside]

The situation surrounding agricultural property and the separation of different assets such as land and residential buildings can make this somewhat more complex.

However, I agree that many could and should consider similar action.

But this does not help in the short term as successful use of trusts will likely require the settlor to survive for a number of years after establishing the Trust.

Trusts are not the only option for planning ahead, you can gift property/land to take it out of inheritance tax.
As long as you understand the 7year implications of this, I struggle to understand farmers anger especially as they only have to 20% inheritance tax and the rest of us have to pay 40%

 

[hambugerpete]

Trusts are not the only option for planning ahead, you can gift property/land to take it out of inheritance tax.
As long as you understand the 7year implications of this, I struggle to understand farmers anger especially as they only have to 20% inheritance tax and the rest of us have to pay 40%

Lots of angry dukes with friends in the media.

 

[hambugerpete]

Oh come on, you can get away with plenty of socialist views on this forum, but stray slightly to the “other side” and it’s hard censure.

You mean you don't like your hard line right wing views getting challenged, as they should.

 

[Robster59]

Just seen an advert for a new programme coming on Discovery. "Meet the Rees-Moggs". My missus heard my "Oh for f@@@s sake!" comment from upstairs.

 

[D-S]

Is there a reason why farmers can’t just gift the excess land above the IHT threshold to their heirs? They are going to get it in due course anyway.
I understand that there is the 7 year rule but the liability reduces every year and you could just take out life insurance to cover the reducing IHT liability.
I understand this might be costly for some very old farmers who have not prepared but this is going to be a small number which will reduce year on year and disappear in 7 years.
I assume this solution can’t be right because if it is, this is lot of fuss over not very much.

 

[Starter]

Again, I don’t believe you’re correct, my son is covered from the day I signed the documents. Whole process took 3 months to sort, from initial meeting to signing the trust deeds.

I agree it can be complex, but there is a lot of misinformation out there and the first step is to speak to an expert.

Separate rules apply to trusts for "vulnerable persons" which may be the case for your son.

 

[cliveb]

It won't effect ACTUAL working farmers too much
It will effect people like Clarkson, Dyson and such who have bought massive amounts of land to avoid IHT

So it will claw tax in from the RIGHT type of people IE tax evading self entitled millionaires

In that case, why is the IHT rate only 20% instead of 40%?
If, as you say, this change is only to target wealthy tax dodgers, then surely charging the full rate would be appropriate?

 

[Voyager EMH]

The 1984 Inheritance Tax Act gave farmers 50% relief - equivalent to reducing current rate of 40% IHT to 20%.

In 1992 this was increased to 100% relief.

We are going back to the 1984 relief of 50%.

Anyone holding agricultural land for the last 32 years will have most likely seen a huge increase in the value of this asset.
This capital will be subject to 20% IHT rather than the 40% that applies for everyone else. It is a special case and there are justifiable reasons for this in my view.

Zero, 20% or 40%.
The middle one seems better than the other two to me.
Others may disagree.

I think the 100% relief has achieved what it needed to achieve over what will be 33 years and has run its course.
No tax schemes by a government can remain unchanged forever. They have to change from time to time and adapt to the income and wealth of the economy changes over the years.

 

[upsidedown]

Been away in London and will post about that in another thread.
I've worked on farms most of.my life and in a very small way farmed in my younger years by rearing beef cattle on rented land.
This article ,which is quite long goes a explains the issue far better than I can

Why inheritance tax charges are really good for real farmers – but not for financial whizz kids

I am aware I touched on the issue of inheritance tax on farms yesterday, but I felt it was worth another go. There is a lot of additional analysis in this post, so I hope it is worthwhile reading. When farmland has become financialised in the way it has been because...

www.taxresearch.org.uk

 

[Red devil]

Oh come on, you can get away with plenty of socialist views on this forum, but stray slightly to the “other side” and it’s hard censure.

 

[upsidedown]

5 farmers got together to organise Tuesday's protest but the main one is a chap called Olly who farms just outside of Liverpool.
He started blogging in the pandemic and has done one every day since he started . He has diversified and readily admits he gets income from his you tube channel which helps his business along with rented out cottages and a dog walking field.
He"s very passionate about mental health in the farming community and last year he and his friends drove a combine from John O'Groats to Lands End to raise awareness and funds for NW air ambulance and has so far raised over £80K for them .
This is one of his videos from the day after

 

[PaulMdj]

Separate rules apply to trusts for "vulnerable persons" which may be the case for your son.

Separate rules apply to trusts for "vulnerable persons" which may be the case for your son.

It’s a straightforward trust, his medical issues were not discussed until after we were happy with the advice given.


When the Duke of Westminster died in 2016 his son inherited £9.9 Billion, but avoided 40% IHT (some £4 Billion) due to him putting the majority of his estate in to trust prior to his death.

It can be done, hence why anybody, not just Farmers, considering their estate after death should seek expert advice

 

[upsidedown]

5 farmers got together to organise Tuesday's protest but the main one is a chap called Olly who farms just outside of Liverpool.
He started blogging in the pandemic and has done one every day since he started . He has diversified and readily admits he gets income from his you tube channel which helps his business along with rented out cottages and a dog walking field.
He"s very passionate about mental health in the farming community and last year he and his friends drove a combine from John O'Groats to Lands End to raise awareness and funds for NW air ambulance and has so far raised over £80K for them .
This is one of his videos from the day after

They also asked all farmers who attended to donate some British food and this was donated to City Harvest.
If you watched the vid, the toy tractors at the end had been donated by farm machinery company and they were then being passed on to hospitals for children.

London farmers donate 6.6 tons of food amid inheritance tax protest

Farmers in London have contributed 6.6 tons of food amidst a protest against modifications to agricultural inheritance tax, translating to 15,400 meals for the needy, as per City Harvest.…

www.freshplaza.com

 

[GB72]

Really appreciate a lot of the comments on here. It has helped me better understand some of the issues and options in relating to farming that I had not appreciated fully from just speaking to those who work or own farms around me. Nice to see a well informed debate with cogent points put across, acceptance and evolution of views and very little in the way of 'I am right, you are wrong'. Gives me faith that the art of debate still exists.

 

[PaulMdj]

Been away in London and will post about that in another thread.
I've worked on farms most of.my life and in a very small way farmed in my younger years by rearing beef cattle on rented land.
This article ,which is quite long goes a explains the issue far better than I can

Why inheritance tax charges are really good for real farmers – but not for financial whizz kids

I am aware I touched on the issue of inheritance tax on farms yesterday, but I felt it was worth another go. There is a lot of additional analysis in this post, so I hope it is worthwhile reading. When farmland has become financialised in the way it has been because...

www.taxresearch.org.uk

Thanks for sharing.

 

[Mudball]

Got a new tyre... nicely inflated and all that. Drove off from the garage and the BMW is complaining that it cant recoganise the tyre. It is the same type that is on the other side!!

I have already done a couple of tyre pressure resets. But it refuses to find it.. It runs the recognition cycle till about 80% and then says cant detect tyre. the fact that I am driving the car and it is moving on the road is lost on it. Wits end..

 

[Arthur Wedge]

Been away in London and will post about that in another thread.
I've worked on farms most of.my life and in a very small way farmed in my younger years by rearing beef cattle on rented land.
This article ,which is quite long goes a explains the issue far better than I can

Why inheritance tax charges are really good for real farmers – but not for financial whizz kids

I am aware I touched on the issue of inheritance tax on farms yesterday, but I felt it was worth another go. There is a lot of additional analysis in this post, so I hope it is worthwhile reading. When farmland has become financialised in the way it has been because...

www.taxresearch.org.uk

So reading that

The IHT will help the people that will want to continue farming and actually targets those that are hoovering up the landing for tax purposes or to sell for houses etc

 

[cliveb]

So reading that

The IHT will help the people that will want to continue farming and actually targets those that are hoovering up the landing for tax purposes or to sell for houses etc

I watched that video a couple of days ago, and the main conclusions I got from it were:
1. Farmers' real problems are to do with the power of the food industry and supermarkets that keep down the prices they can get for their produce.
2. The IHT relief has driven up the price of agricultural land, so this IHT move might reduce the price of land and get more people into farming.
But until issue #1 has been addressed, I can't see how #2 is going to tempt many into farming.

 

[Bunkermagnet]

Got a new tyre... nicely inflated and all that. Drove off from the garage and the BMW is complaining that it cant recoganise the tyre. It is the same type that is on the other side!!

I have already done a couple of tyre pressure resets. But it refuses to find it.. It runs the recognition cycle till about 80% and then says cant detect tyre. the fact that I am driving the car and it is moving on the road is lost on it. Wits end..

The tyre pressure sensor damaged in the tyre change?
They don't last forever either, but most are damaged when a tyre is changed.
It isn't cheap either