6 ms·
Oh that's why forest land has gone up so much! Thanks, I'd seen the same rise, and couldn't figure out why.
by ajb 2y ago
Oh that's why forest land has gone up so much! Thanks, I'd seen the same rise, and couldn't figure out why.
- londons_explore 2y agoI've been mulling over buying up farmland and planting trees and then just sitting on it for 20 yrs to capitalize on it.
- dwighttk 2y agoIn the us sometimes people do that because of an agricultural exemption to property taxes.
- PyWoody 2y agoSome states call it different things but most call it in "Current Use." [0] If you want to take the land out of Current Use, you'll usually have to pay the back taxes first. Around my parts, it's seen as a very good program as it promotes natural growth. It's also great for protecting wetlands that wouldn't be buildable anyways but can now be protected at a lower cost. [0] https://www.forestsociety.org/advocacy-issue/current-use https://www.forestsociety.org/advocacy-issue/current-use
- Stevvo 2y agoIf you buy a forest of trees planted 20 years ago it will be cheaper than farmland, and you may be able to take income from thinning from day one.
- rwmj 2y agoIt's also because an exception to inheritance tax that covers farm land and forests. Rich people have been buying up both (Dyson owns several counties now). https://www.gov.uk/guidance/woodland-owners-tax-guidance https://www.gov.uk/guidance/woodland-owners-tax-guidance https://whoownsengland.org/2017/09/19/why-is-james-dyson-hoovering-up-land/ https://whoownsengland.org/2017/09/19/why-is-james-dyson-hoo...
- pydry 2y agoI wonder if Starmer included this loophole in his list of "painful tax rises" he promised for next year's budget.
- b800h 2y agoLiterally yes - generational farms are expected to go out of business when the head of the family dies as a result, and have to sell up to massive farm businesses.
- Retric 2y agoThat’s great news! Small family farms are a significant economic drain. I’m only half serious, but protecting multigenerational business does come with serious drawbacks.
- b800h 2y agoThis isn't "protecting" multigenerational businesses. Inheritance tax shouldn't be a thing in the first place.
- Reason077 2y ago> "Inheritance tax shouldn't be a thing in the first place." The problem with entrenched intergenerational wealth is you eventually end up with a feudalistic society, with a small population of extremely wealthy families controlling all the capital but essentially just becoming rent-seekers, with no incentive or need to innovate in order to maintain their wealth (on the contrary, they will seek to suppress innovation and disruption in order to maintain the status quo). In the long run this leads to violent revolution or other forms of societal collapse.
- Retric 2y agoExcluding any type of income from taxation means every other type of income needs to be taxed at a higher rate, all to protect whatever is being carved out. Thus we tax income from investments, salaries, and yes inheritance. Inheritance tax has positive externalities as inherited wealth discourages people from being productive members of society. Meanwhile taxing salaries discourages work, and taxing investments discourages savings.
- Stevvo 2y agoIncome from the sale of timber is exempt from income tax & corporation tax. Forrest ownership in the UK is quite literally growing money on trees.
- HeatrayEnjoyer 2y agoWhy is it exempt?
- londons_explore 2y agoSome rich people own forests and have friends in government. And it can be passed as a way to encourage forestry as being eco friendly.