- Tue Nov 19, 2024 11:21 pm
#79454
Trying to understand the “logic” of the arguments against the government’s changes. Here’s what I’ve got :
- Farming is a business, aimed at making profits from working in the field of agriculture.
- Farms necessarily entail ownership of variable amounts of land, in order to plant, nurture, and harvest crops and/or graze livestock with the objective of producing food for human consumption.
- A proportion of farms are, historically, “family farms”, which is to say that the business of the farm has been and will seek to be continued by the offspring of the principal owner of the particular farm. This includes buildings, machinery, livestock, other infrastructure and assets of the business which are to be inherited by the offspring of the principal owner of the business on his/her death.
- In this respect, the business of farming is no different to any other non-farming “family” business in which subsequent generations seek to continue the business of their parents after the parents die (or retire).
- Inheritance tax is a tax payable by beneficiaries, usually offspring or other relations, on the assets that they have acquired on the death of their parents or immediate antecedents. There is a statutory limit on the value of such assets below which no inheritance tax is payable by law.
-Since 1984, farming businesses have been exempt from paying any inheritance tax whatsoever.
- The government now requires farming businesses to pay inheritance tax on inherited estates valued at more than one million pounds, but also benefitting, as farming businesses, by paying only half the rate of inheritance tax that other non-farming businesses are obliged to pay.
- Farmers, especially “farmers” such as Jeremy Clarkson and James Dyson, are up in arms at this modest proposal. Their argument is that inheritors of farming businesses deserve exceptional treatment, and should instead be completely exempt from paying any inheritance tax. They want the government to reverse its decision to require farming businesses to be subject to (reduced) IHT.
- These people are driving tractors to Westminster to try to further their grievance.
Nope. I still don’t get it.
"The opportunity to serve our country: that is all we ask.” John Smith, May 11, 1994.