Inheritance tax ...

[Murdochcat]

Exactly its is a tax on dying, one that the wealthy with access to tax advisers easily circumvent.

There’s nothing stopping you or anyone else from using allowable ways to avoid this

If we both died now our estate would be subject to some IHT - but that’s fair. Our children would both get £500K each tax free and I think that’s enough

 

[Mottie]

Yes, up to a million where it passes from spouse to spouse to children, but not if you are unmarried without children

That’s it, I remember now. Our solicitor told us that when we were sorting our wills out - was telling us that our kids will be okay up to £1m.

 

[blup]

No you haven’t

That’s it, I remember now. Our solicitor told us that when we were sorting our wills out - was telling us that our kids will be okay up to £1m.

It was george osborne that brought it in, it was on a sliding scale up to a million ( 2 x 500 k ) and that threshold was reached a few years back

 

[blup]

There’s nothing stopping you or anyone else from using allowable ways to avoid this

If we both died now our estate would be subject to some IHT - but that’s fair. Our children would both get £500 each tax free and I think that’s enough

Its not ungenerous but its worth more in grimsby than godalming. Why should people who have worked hard all their (hopefully) long life have to pay out so much because they are lucky enough to live in an area where property prices have gone up. Your kids might be at a disadvantage because their parents live a high price area, but be walking all the way to the bank if the are lucky enough to live in stoke on trent or derby or blackburn and all the other places where homes under the hammer does good business with the ultra low property prices.

 

[Murdochcat]

Its not ungenerous but its worth more in grimsby than godalming. Why should people who have worked hard all their (hopefully) long life have to pay out so much because they are lucky enough to live in an area where property prices have gone up. Your kids might be at a disadvantage because their parents live a high price area, but be walking all the way to the bank if the are lucky enough to live in stoke on trent or derby or blackburn and all the other places where homes under the hammer does good business with the ultra low property prices.

You lost me

 

[JonathanM]

Why should people who have worked hard all their (hopefully) long life have to pay out so much because they are lucky enough to live in an area where property prices have gone up

Aren't you answering your own question there? For most of these people, the reason they may have to pay inheritance tax is because of luck, not hard work.

 

[Murdochcat]

Aren't you answering your own question there? For most of these people, the reason they may have to pay inheritance tax is because of luck, not hard work.

And those from less prosperous areas don’t have to pay it

And if it was removed we would ALL have to pay about 1% extra income tax

I always find this argument rather odd as well over 90% of estates don’t pay IHT

 

[ellal]

And those from less prosperous areas don’t have to pay it

And if it was removed we would ALL have to pay about 1% extra income tax

I always find this argument rather odd as well over 90% of estates don’t pay IHT

When the Duke of Westminster and Liz popped their clogs, the amount they avoided paying (and their families do every year by tax evasion) would have meant taxes could have been cut...

Or better still, provide money to better fund services that benefit millions not the billionaires!

 

[blup]

Aren't you answering your own question there? For most of these people, the reason they may have to pay inheritance tax is because of luck, not hard work.

The hard work of their parents or other relatives, why should that be taxed again?

 

[ellal]

The hard work of their parents or other relatives, why should that be taxed again?

What about the wealth of those who inherited all that money from lands stolen from the people, and corrupt royal laws?

Why should the 'king' get vast amounts of money from offshore wind farms because he 'owns' the seabeds?

And why when he pops his clogs should inheritance tax not be paid on his unearned money?

 

[blup]

What about the wealth of those who inherited all that money from lands stolen from the people, and corrupt royal laws?

Why should the 'king' get vast amounts of money from offshore wind farms because he 'owns' the seabeds?

And why when he pops his clogs should inheritance tax not be paid on his unearned money?

Her late Majesty did a deal with inland revenue after the Windsor castle fire iirc, and Charles now pays income tax, but not IHT on what he inherited. It's not a system you start with from scratch, but what's the point of the royal family if they work out of a portakabin?

 

[noseall]

The hard work of their parents or other relatives, why should that be taxed again?

Are you saying Big Boy inherited money should not be taxed - ever?

 

[blup]

There is an argument for ending it altogether, the super rich have all sorts of ways to avoid it with complex trusts on and off shore. For joe bloggs the £325k threshold is low, so maybe exempt the family home. It seems wrong to tax death when people have already paid tax on money invested into their home.

 

[Murdochcat]

There is an argument for ending it altogether, the super rich have all sorts of ways to avoid it with complex trusts on and off shore. For joe bloggs the £325k threshold is low, so maybe exempt the family home. It seems wrong to tax death when people have already paid tax on money invested into their home.

Not sure I agree with you. There is a huge amount of people that don't have £1000 to their name so how many do you think have over £325K in cash and investments? Not many for sure.

And remember only about 5% of estates pay any IHT.

When death duties were a "thing" countless country homes fell in to ruin until they got passed to the National Trust - some get sold on and typically to foreign investors who rarely live here.

In the case of the Royals - they can't sell anything and if you look at the Duchy of Cornwall - its sole purpose is to provide for the Heir to the throne AND also it employs a vast number of people and they pay tax and NI etc etc

 

[JonathanM]

There is an argument for ending it altogether, the super rich have all sorts of ways to avoid it with complex trusts on and off shore. For joe bloggs the £325k threshold is low, so maybe exempt the family home. It seems wrong to tax death when people have already paid tax on money invested into their home.

You are being disingenuous. Most Joe Bloggs are families with a home and benefit from the £1 million allowance.