Read LOTR when I was about 12 many many years ago 🤣🤣

Much like the winter fuel which in reality makes almost 0 input to treasury black hole but in practice will hit some people who are not the wealthiest and generally just looks like identity and culture war politics..

The most affected will be the 22% percent from 73% to 95% - and ones who have not got immediate tax planning solutions - so people who are too old for insurances or won’t live 7 years- so the practical nature of the legislation is that it will affect non rich farmers…

Which means to me this is completely naive politically and a leaf out of the Populist playbook.

Find someone to blame/ rich pensioners, rich farmers- but the legislation itself will not actually change the fact that the rich are getting richer and it’s not aimed at just the 5%

Asset rich and cash poor, some farmers will struggle to pay IHT even over a period of time.

Now the crux - like ordinary IHT there are ways to mitigate - again trusts, insurances and 7 year gifting rules

So long term the treasury may find lower and lower returns from this new law

So many many people are not paying IHT either!
The current Labour legislation says that 73% will not be affected but that means 27% will or 1/4
That’s much higher than 1/20
They can pay over a period of time but with the above current climate shows tiny or zero margins

One thing I see is people say “why should they not pay inheritance tax when I do”- but in reality 1 in 20 currently pay inheritance tax
The thresholds atm are 1 million for a married couple and then 40% after that
However there are ways such as trusts and the “7 year rule” to
Mitigate IHT

In conclusion the conditions right now are some of the hardest they have ever been for farmers

The view that they are “entitled” or “the rich” is patently untrue

Now onto the actual tax

And rightly increased animal welfare laws means animals need for space and better conditions
Decreased subsidies
Larger population needing feeding which means we also need to import which often charge less.
Imported machinery is more expensive
Petrol prices high

Caused by Ukraine war, low profit margins caused by low prices offered by huge international companies who engage in price wars meaning farmers get less than they make often for produce
Climate change which is affecting crops - some years have had record rain, or record drought..

A

Surprise suprise Trump presidency will favour Musk