@omzidar @USCBOcostest UK gov announced in last Budget it would tax carried interest as trading income from April 2026, but at an (abritrary!) discount capturing only 72.5% of true income - giving an effective rate of 34%. Altho in future this discount rate would be easy to modify...

About those 10,800 millionaires who left the UK... it's based on fewer than 100 people, who changed location on LinkedIn... not a serious study. @timharford.bsky.social already debunked these stats ages ago. Why are they still being reported as fact?

Non-doms are now within IHT regime and will be looking to limit their exposure. Without any cap on AR, this surely involves buying up an absolute tonne of farmland...also not good for real farmers. They will still do this to some extent, as relief at 50% is better than nothing.

@ahdjoh @20 Apologies you're right that RNRB is tapered on 2nd death in my example, so effectively only £2.8m is tax free. Means that with a £1m tax bill the farm might only be worth £7.8m but I think the general point holds...

@ahdjoh @20 Good question and yes if all used on 2nd death. But solution is to leave £1.5 to kids on 1st death, to use up RNRB and £1m relief optimally. Expect this will become standard planning, even if relief not formally transferable (and RNRB tapered).

@EdwdPrice @20 The farmer who was featured referred to her parents (i.e. would have 2x reliefs), so I'm just giving context to the actual example used. I agree that #BBCLauraK could've chosen a better one!

For anyone who wants workings for the £8m / top20 stat: to get £1m IHT you need farmland worth £5m @20%. That's on top of £3m (effectively) tax free for a couple. HMRC stats show only 37 estates with claim for Agricultural Relief >£5m, with half of those below £6.4m. So £8m is comfortably top 20.

@a264567878787 @DanNeidle @EdwdPrice @DanielPhilips1 @Ian_Fraser @paullewismoney @hmtreasury The revenue estimate is for both APR and BPR, so not all from farm assets (i.e. includes non-farm businesses).

This is quite strong language from someone who obviously doesn't understand that trusts also currently benefit from Agricultural Relief and Business Relief and this reform is capping it for them as well.

For more discussion of the issues and tonnes of facts about IHT using actual tax data, check out our @CenTaxUK report:

@Frolicfoolery But neither estate is above £1.5m here. If you don't optimise on first death by leaving some to kids instead all to spouse, then this becomes an issue on second death.

@RobGreensDaze You only pay tax on the amount above the threshold not the full amount (same as for income tax). If passing to spouse then there's no tax and no limit. Hope this helps.

RT @xiaoweixu_: Yesterday’s Budget raised the relative cost of using: 📈 employees v contractors 📈 low-paid v high-paid staff 📈 labour v cap…