[superpeasant]

The main reason for dramatic farmland price increases in Britain is because of the huge tax advantages it receives. Inheritance tax is levied at 40% on the wealth above £325,000 of anyone who dies in the UK. This includes the family home, stocks etc. On the basis that ‘only little people pay taxes’ the ultra-wealthy have made sure they have several ways of avoiding this one. First is the exemption from Inheritance Tax (IHT) of any assets handed over more than 7 years before death. This is obviously only useful to the ultra-rich who can feel confident that they can give away £millions while still keeping a few £hundreds thousand to cover their old-age costs. The other loophole is farmland. All agricultural land and associated houses (which can be historic mansions) are completely exempt from Inheritance Tax. That is why a huge proportion of this little island ‘democracy’ is still owned by a tiny number of families who have sat on it for hundreds of years. The small amount of land which does come onto the market each year tends to be bought for tax-avoidance purposes by ageing investors rather than by farmers for food production.

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