If she was serious about stopping the super rich from investing in farms then why didn’t Rachel Reeves close this ‘tractor tax’ loophole? Or is someone in the media mistaken?
Apparently the dodge is that farmers can avoid paying the new Inheritance Tax that Reeves has levied on them if they pass on their assets to successors seven years before they die (I’m assuming this means at least seven years before that happens, otherwise it would assume a level of prescience that is beyond normal folk).
Most working farmers can’t benefit from this because of the “gifts with reservation” clause that means they must not benefit from it by either living on the property or using the returns to fund their lifestyle, otherwise they will still be taxed on it.
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Wealthy investors [like – allegedly – Jeremy Clarkson, pictured] who bought the property to use as a nest-egg may be exempt from that clause because they are unlikely to be living there – so they can pass on the assets without fear of taxation.
This Writer doesn’t agree with the rather hysterical tone of the rest of the Independent article on this subject, which claims that family farmers will be hammered by the tax – because most of them are still exempt by the simple fact that the total value of their assets isn’t enough to trigger it; I have covered the reasons for this previously.
So one wonders, if Reeves’s intention really was to get the investors to sell up their land in order to bring prices down to a level where start-up farmers can buy it, whether the new Inheritance Tax law is now a dead letter.
Still, it makes you wonder what the Jeremy Clarksons of this country thought they were achieving by travelling to Westminster and clogging up traffic, complaining about it. I quite fancy comparing them with Insulate Britain, just to play up the absurdity of it.
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Why didn’t Rachel Reeves close this ‘tractor tax’ loophole?
If she was serious about stopping the super rich from investing in farms then why didn’t Rachel Reeves close this ‘tractor tax’ loophole? Or is someone in the media mistaken?
Apparently the dodge is that farmers can avoid paying the new Inheritance Tax that Reeves has levied on them if they pass on their assets to successors seven years before they die (I’m assuming this means at least seven years before that happens, otherwise it would assume a level of prescience that is beyond normal folk).
Most working farmers can’t benefit from this because of the “gifts with reservation” clause that means they must not benefit from it by either living on the property or using the returns to fund their lifestyle, otherwise they will still be taxed on it.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
Wealthy investors [like – allegedly – Jeremy Clarkson, pictured] who bought the property to use as a nest-egg may be exempt from that clause because they are unlikely to be living there – so they can pass on the assets without fear of taxation.
This Writer doesn’t agree with the rather hysterical tone of the rest of the Independent article on this subject, which claims that family farmers will be hammered by the tax – because most of them are still exempt by the simple fact that the total value of their assets isn’t enough to trigger it; I have covered the reasons for this previously.
So one wonders, if Reeves’s intention really was to get the investors to sell up their land in order to bring prices down to a level where start-up farmers can buy it, whether the new Inheritance Tax law is now a dead letter.
Still, it makes you wonder what the Jeremy Clarksons of this country thought they were achieving by travelling to Westminster and clogging up traffic, complaining about it. I quite fancy comparing them with Insulate Britain, just to play up the absurdity of it.
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
4) You could even make Vox Political your homepage at http://voxpoliticalonline.com
5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
fighting for the facts.
Cruel Britannia is available
in either print or eBook format here:
The Livingstone Presumption is available
in either print or eBook format here:
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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