Tory MP Ashley Fox responds to the idea that farmers should stomach the government’s inheritance tax increases. #lbc #shorts #tories #conservative #crossquestion #iaindale #ukpolitics #farmers #debate
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00:00The Jeremy Clarkson example, so many of these farms are bought to avoid paying inheritance tax.
00:04Those people need to be able to... Very few farms are bought for that purpose.
00:08But imagine you have a farm worth £5 million, you have an allowance of £3 million,
00:14so you're going to pay 20% tax on £2 million. That's £400,000.
00:22Now let's imagine that that farm, £5 million capital value, is producing a return of about
00:271%. That's £50,000 a year, on which you'll pay income tax. You have to pay that tax bill
00:36of £400,000 out of an income of £50,000 a year. That is all your income for the next eight years.
00:43And you have to live. And I'm afraid what you demonstrate is the lack of understanding that
00:47the Treasury shows as to how farming is financed. And it's people that don't understand that are
00:54making these decisions. And this is why the farmers in my constituency are so livid with
00:59the Treasury. They simply don't understand what's going on.