I watched the debate in the House of Lords last night on the concerns of farmers over the new imposition of Inheritance Tax on their land holdings. They were previously exempt from IHT but it is alleged that some “farmers” were using it as a tax avoidance scheme. That may be so but many farmers are really upset about the change that will stop farmers passing on their farms to offspring, or make it too expensive to do so and hence lead to the break-up of farms that have been owned for generations.
There were several good speeches opposing the change which you can hear on the BBC Parliament Channel. The House of Lords is a useful addition to democracy as the Members often have long experience of the issues debated.
Note that there are easy ways to stop the inheritance loophole on farms being used by wealthy investors but the Labour Government is as usual sticking to political dogma that the rich should be soaked regardless of the practicalities or unintended consequences.
Another kick in the teeth for farmers that snuck through in the Chancellors Budget was a new tax called the Carbon Border Adjustment Mechanism (CBAM) which is a tax aimed at reducing carbon emissions – particularly on goods such as cement, fertilizer, iron and steel. Fertilizer is often created from oil and gas but is essential to ensure plants grow. Taxing it will result in more expensive food and reduce the existing small profits made by farmers – see https://www.bbc.co.uk/news/articles/cq8v55eqd73o#:~:text=A%20new%20environmental%20tax%20on,been%20produced%20in%20the%20UK.
This is more environmental dogma with dangerous consequences.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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