The whole farming and inheritance tax argument has become so political and emotional.
I want to explore some of the issues.
Farmland has increased in value by a factor of 3 since 2000 so quite small farms could now attract the tax but the vast majority of the population couldn’t even begin to dream of having so much family wealth.
This leads me to the statistic that is banded about that we are something like the sixth wealthiest country in the world. Looking at the make up of this wealth the majority is in land and so has no economic benefit, second come pension schemes the economic benefit of which depends on how they are invested and that is another current argument
Farmers say they are asset rich and cash poor. However the economics of farming are severely under pressure. Costs have risen but prices haven’t. Surely the answer is to pay a realistic price for our food and this brings in the whole argument of ultra processed food and its cost advantage when so many families are in poverty.
High profile people have put their money into farmland to secure both the current IHT relief and CGT rollover. This is offensive and is rightly the target of taxation. We live in a society where luxury flats are a short distance from food banks which is both unfair and sick at heart.
In relation to IHT itself, it is a voluntary tax with lifetime gifts tax free after seven years. However, I recall complications with reservation of benefit which for a retired farmer living on the farm would be difficult.
Something has to be done and the government is trying to do it. Of course those paying won’t be happy.