Nigel Farage in London with hundreds of farmers today

Witzend

I can’t stand Farage, but I’m with him on the farmers issue. IMO it’s nothing but class warfare on the part of Labour - farmers = landowners = undeserving upper crust who need showing who’s boss and clobbering with tax.

well that's a contradiction for a start; we are always being told by farmers that it is the small, family owned farms which are at risk, hardly class warfare, or 'undeserving upper crust' what nonsense.

I don’t think you’ll feel anything after you’re dead!

Barleyfields

The trouble is, Churchview, you have absolutely no idea what the tax on your estate will be spent on. A vanity project perhaps. I intend to allow the government to get their hands on as little of my money as possible. Preferably none. I have paid plenty of tax over the years and continue to do so, as do many of us despite having retired.

We never know exactly what our tax will be spent on but we can only vote for party we hope will spend it wisely. There's a chance my inheritance tax might be spent on the NHS, fire fighters, the arts or education and yes, there's a chance it might be squandered on useless PPE.

It's the risk we all take in order to have a health service when we need it and a 999 to call if our house catches fire.

All my adult life I've happily paid tax with the view that if you want a functioning society you have to pay for it. I don't think I'll feel any differently after I'm dead.

Wheniwasyourage

I'm with Churchview on IHT and income tax. I'm not quoting the post from 15:01:14 as it's quite long, but I think it says what I would say. We are not in the SE of England, and our house has not gained anything like as much in value, but even so, our family may have to pay some IHT. So be it.

As for farmers, there are family farms where the older generation hangs on to the farm long after the younger generation is doing almost all the work. If the farm ownership was transferred earlier, and the older owner survived for 7 years, surely there would be no IHT to be paid anyway? Even where there is a liability to the tax, it's at a lower rate than non-farming families would have to pay.

Older farmers cannot transfer the farm to younger family members and escape IHT if they survive for seven years if they continue to live in the farmhouse or draw an income from the farm. The continuing interest in the assets transferred prevents the transfer from being exempt. Many of them have no choice but to continue living on the farm as they don’t have the money to do otherwise.

Barleyfields

I wonder if people realise that their family will have to pay IHT before they can get a grant of probate, or agree to pay interest on the tax due until such time as they have cash from the estate (maybe after selling a house) to pay the bill? With the housing market being slow, that interest (4% above base rate) will quickly mount up.

Exactly this 👏👏👏

I wonder if people realise that their family will have to pay IHT before they can get a grant of probate, or agree to pay interest on the tax due until such time as they have cash from the estate (maybe after selling a house) to pay the bill? With the housing market being slow, that interest (4% above base rate) will quickly mount up.

Barleyfields

The trouble is, Churchview, you have absolutely no idea what the tax on your estate will be spent on. A vanity project perhaps. I intend to allow the government to get their hands on as little of my money as possible. Preferably none. I have paid plenty of tax over the years and continue to do so, as do many of us despite having retired.

This.

theworriedwell

People have probably paid more in rent than most homeowners spend on upkeep.

Many homeowners pay interest on a long mortgage. Plus costs and fees to purchase. Add upkeep and modernisation. Equity gain is not free.

I'm with Churchview on IHT and income tax. I'm not quoting the post from 15:01:14 as it's quite long, but I think it says what I would say. We are not in the SE of England, and our house has not gained anything like as much in value, but even so, our family may have to pay some IHT. So be it.

As for farmers, there are family farms where the older generation hangs on to the farm long after the younger generation is doing almost all the work. If the farm ownership was transferred earlier, and the older owner survived for 7 years, surely there would be no IHT to be paid anyway? Even where there is a liability to the tax, it's at a lower rate than non-farming families would have to pay.

The trouble is, Churchview, you have absolutely no idea what the tax on your estate will be spent on. A vanity project perhaps. I intend to allow the government to get their hands on as little of my money as possible. Preferably none. I have paid plenty of tax over the years and continue to do so, as do many of us despite having retired.

Churchview

Anyway, back to Reform, Farage and Cornwall.

Cornwall one of the places that voted leave despite benefiting massively from EU funding. The money given by the government as a sop after Brexit has long since run out. Cornish farmers have been very vocal about how bad Brexit has been for them.

Will Cornwall support Farage's Reform candidates now?

Turkeys voting for Christmas ?

Mr Farage says lots of things on lots of matters. I am not aware of him saying a great deal about the constituency he represents- unless, of course, I am wrong, and the Clacton voters are very concerned about Inheritance Tax . Perhaps a GNetter in the area could enlighten us?

Barleyfields

Perhaps you had a mortgage and therefore paid, out of taxed income, substantially more than £32,000? And doubtless you have maintained and maybe improved the house, again using taxed income? Would you really like the government to take 40% over and above £500,000?

I did have a mortgage but again, the increase in the value of the home far outweighs the amount spent on mortgage repayments and renovation.

The value of my house now is more than I ever imagined it could possibly be. When I started out the figures I see now would have seemed like pools win money.

As to whether I would like the government to take 40% of the amount over and above £500,000 - well the truth is, I'll be dead, my family will still receive a significant amount despite not having 'earned' the market rise of value in the house any more than I did. They will also benefit from the tax being spent on society, care, the environment and public service.

I never minded paying income tax and I worked a lot harder for my income than I did for the rise in the value of my house - I just had to sit here in my comfy chair and watch the price increase for 40 year.

Farage with his wellies and Barbour pretending to be Mr Rural when everyone knows he is a Londoner with a posh background.

Indeed, some people do prefer to rent and have the landlord responsible for maintenance. I have known people with that mindset.

GrannyGravy13

Churchview

I bought my house with earned income.
It cost £32,000 in 1983.

It's now worth enough for inheritance tax to be paid on it.
I didn't earn the difference in value - it just happened through the passing of time and the rise in the market.

Tax hasn't already been paid on that bit.

You must have spent £1,000’s of your taxed income on your house over 43 years otherwise it wouldn’t be worth what it is now as it would in all probability be derelict!

I have spent some money on my house in the 40 years I've owned it but only a very small fraction of the value of it now. The increase in value of the house is much more to do with market rates than any work I have done.

theworriedwell

People have probably paid more in rent than most homeowners spend on upkeep.

And?

That's what some people prefer to do.

GrannyGravy13

Churchview

I bought my house with earned income.
It cost £32,000 in 1983.

It's now worth enough for inheritance tax to be paid on it.
I didn't earn the difference in value - it just happened through the passing of time and the rise in the market.

Tax hasn't already been paid on that bit.

You must have spent £1,000’s of your taxed income on your house over 43 years otherwise it wouldn’t be worth what it is now as it would in all probability be derelict!

Well said GrannyGravy.

If we take the price of what we paid for the house (after paying stamp duty and any other relevant taxes) plus the amount we have spent on upkeep, home improvements (paying VAT and keeping people in work who pay tax) perhaps that amount should be deducted from the total before IHT is payable.

There is a house near here which I pass regularly and it is a prime example of what happens to a property if left unattended and neglected. The owner was in a home for years, I don't know what is happening to it.

Anyway, back to Reform, Farage and Cornwall.

Cornwall one of the places that voted leave despite benefiting massively from EU funding. The money given by the government as a sop after Brexit has long since run out. Cornish farmers have been very vocal about how bad Brexit has been for them.

Will Cornwall support Farage's Reform candidates now?

People have probably paid more in rent than most homeowners spend on upkeep.

Perhaps you had a mortgage and therefore paid, out of taxed income, substantially more than £32,000? And doubtless you have maintained and maybe improved the house, again using taxed income? Would you really like the government to take 40% over and above £500,000?

Churchview

I bought my house with earned income.
It cost £32,000 in 1983.

It's now worth enough for inheritance tax to be paid on it.
I didn't earn the difference in value - it just happened through the passing of time and the rise in the market.

Tax hasn't already been paid on that bit.

Exactly. Many of us will be the same. As someone who is unlikely to ever inherit anything I'd be shocked at someone inheriting over half a million and objecting to paying tax which still left them with over half a million. Talk about entitled.

Churchview

I bought my house with earned income.
It cost £32,000 in 1983.

It's now worth enough for inheritance tax to be paid on it.
I didn't earn the difference in value - it just happened through the passing of time and the rise in the market.

Tax hasn't already been paid on that bit.

You must have spent £1,000’s of your taxed income on your house over 43 years otherwise it wouldn’t be worth what it is now as it would in all probability be derelict!

Barleyfields

Wouldn’t you want your children to benefit?

Of course.

I bought my house with earned income.
It cost £32,000 in 1983.

It's now worth enough for inheritance tax to be paid on it.
I didn't earn the difference in value - it just happened through the passing of time and the rise in the market.

Tax hasn't already been paid on that bit.