Budget 2015

[Bold Seagull]

You were talking about tax on tax, I am pointing out that capital growth isn't taxed prior to the death. So basically the inheritor benefits from entirely unearned income, of course it should be taxed.

Exactly. If I buy a house tomorrow with money I've already paid tax on, sell it 10 years later, I'll pay tax again in capital gains. Surely IHT is just the same thing, only you're given the house!

 

[Westdene Seagull]

Y

Yes, far better to p1ss any profit up the wall than give your estate £325,000 and 60% of whatever else thereafter. That will show them Westdene, that will show them!!!

Well at least I would have had a good time on MY money !

 

[Westdene Seagull]

Exactly. If I buy a house tomorrow with money I've already paid tax on, sell it 10 years later, I'll pay tax again in capital gains. Surely IHT is just the same thing, only you're given the house!

Not if it's your primary ( or only ) home.

 

[Bold Seagull]

Y

Well at least I would have had a good time on MY money !

That is exactly the point - it's YOUR money, but it ain't yours once you die. Your estate on your death exists because of the economy, growth, pension schemes, housing growth etc. There is no reason someone inheriting this shouldn't have to pay tax it like any other capital gain or gift.

You couldn't just give someone £50,000 tomorrow without them needing to declare it for tax. No reason why this should change once you die.

 

[Bold Seagull]

Not if it's your primary ( or only ) home.

But the person inheriting the home is the one paying the tax, not you.

 

[ROSM]

I wonder how many people watched or heard Ed M's budget response? Conclusive proof why Cameron won't debate him head to head. Short, funny and very pointed. Maybe too little too late though

 

[BigGully]

That is exactly the point - it's YOUR money, but it ain't yours once you die. Your estate on your death exists because of the economy, growth, pension schemes, housing growth etc. There is no reason someone inheriting this shouldn't have to pay tax it like any other capital gain or gift.

You couldn't just give someone £50,000 tomorrow without them needing to declare it for tax. No reason why this should change once you die.

Can you not give away any amount you like, but would need to survive seven years for it not to be liable for tax ?

 

[alfredmizen]

Because it does nothing to address the wealth distribution problem we have in this country. I don't care that it is money that has already been taxed. What difference does it make if every £1 in tax is paid for by 80p income tax and 20p inheritance tax or 90p income tax and 10p inheritance tax?

Inheritance tax is by far the fairest tax of all as nobody is being penalised because the person paying it is dead!

You complain about people receiving inheritances getting something for doing f**k all, yet then talk about wealth redistribution , what's the difference, it's someone receiving money for doing f**k all , no ? Inheritances have already been taxed, it's an outrage that there is any such thing as inheritance tax full stop.

 

[Machiavelli]

Crikey, my family is certainly not rich, not even 'well off' but my parents live in a small house in a good area. My brother has never had the money to buy his own house, were my parents to pass away, their inheritance money from the house would be massively eaten into by the tax and probably ensure that he couldn't afford to live in their home. Surely it penalises those of us who live down south, higher cost of living, housing and tax?

Well if this is the case, you're in the wealthiest 1% in the world, which means that you should be paying more -- and not less -- tax.

 

[Simster]

You complain about people receiving inheritances getting something for doing f**k all, yet then talk about wealth redistribution , what's the difference, it's someone receiving money for doing f**k all , no ? Inheritances have already been taxed, it's an outrage that there is any such thing as inheritance tax full stop.

When someone dies there is money on the table. No tax means a chosen handful get to keep it despite not earning it. Tax means ALL of us get a slice of a slice of the pie whereas the chosen handful only get most of it.

Why shouldn't a massive capital gain (such as a family home) be taxed? Why can't your kids earn their own money? Why should you get to make decisions when you're dead?

Outrage? Behave.

 

[Pavilionaire]

Well they wouldn't because their tax free IHT allowance is £325,000.

Anyone earning £100K in the year of their demise is probably living in a house worth £325K so the £NIL rate band will have already been used up on their death.

We'll have to agree to disagree. I personally think tax on tax is fundamentally wrong - I don't believe that a person should earn money and the government have two bites that take two-thirds of those earnings.

As an accountant I'm more concerned with how this country is going to pay sufficient tax without the mechanism of a Tax Return, in particular how sole traders, partnerships and limited company directors are going to be able to accurately report their true taxable profit on a monthly basis, which is what this government is aiming for.

Annual Tax Returns ARE a pain, but not as much of pain as having to file accounts EVERY MONTH.

 

[Machiavelli]

You complain about people receiving inheritances getting something for doing f**k all, yet then talk about wealth redistribution , what's the difference, it's someone receiving money for doing f**k all , no ? Inheritances have already been taxed, it's an outrage that there is any such thing as inheritance tax full stop.

Well done with your aristocratic logic.

 

[Bold Seagull]

Anyone earning £100K in the year of their demise is probably living in a house worth £325K so the £NIL rate band will have already been used up on their death.

We'll have to agree to disagree. I personally think tax on tax is fundamentally wrong - I don't believe that a person should earn money and the government have two bites that take two-thirds of those earnings.

As an accountant I'm more concerned with how this country is going to pay sufficient tax without the mechanism of a Tax Return, in particular how sole traders, partnerships and limited company directors are going to be able to accurately report their true taxable profit on a monthly basis, which is what this government is aiming for.

Annual Tax Returns ARE a pain, but not as much of pain as having to file accounts EVERY MONTH.

I tell you what though, as a sole practitioner within a limited company structure, I share your concern!!

 

[Bozza]

Institute of Directors: This was a solid and responsible Budget. Few chancellors would be able to resist the temptation to binge on a £22bn windfall from the sale of bank shares this close to an election. By using it to pay down our national debt, George Osborne has shown commendable discipline.

TIGA Video Games Group: TIGA applauds the new support promised by the chancellor in the Budget for the UK video games sector. Following the achievement of Games Tax Relief, TIGA's top priority has been the achievement of a new Prototype Fund to enable start-up studios to access finance and develop playable prototypes. TIGA also called for the maintenance of the Skills Investment Fund, a measure that enables more studios to invest in skills, training and workforce development.

RAC: "With fuel duty revenue making up about 5% of the Treasury's tax income there was never going to be a huge giveaway as the chancellor still desperately needs motorists' money. But with the latest figures showing that almost a million of the poorest households see a quarter of what they spend go on buying and running a car, the continued freeze is very welcome."

Scottish Whisky Association: The industry is raising a glass to George Osborne and his Treasury team, as well as to all those who have supported our campaign over the last two decades.

 

[Bold Seagull]

Can you not give away any amount you like, but would need to survive seven years for it not to be liable for tax ?

No, the person receiving it, unless exempt would need to pay tax on the gift.

http://www.money.co.uk/article/1004329-how-do-i-gift-money-without-being-taxed.htm

 

[Pavilionaire]

Exactly. If I buy a house tomorrow with money I've already paid tax on, sell it 10 years later, I'll pay tax again in capital gains. Surely IHT is just the same thing, only you're given the house!

Capital Gains is tax on someone's secondary wealth, i.e. second homes, stock and shares etc. The top rate of CGT is 28%. IHT is on their home and what's left in their accounts to cover their living costs, and it's charged at 40%.

 

[seagullsovergrimsby]

I wonder how many people watched or heard Ed M's budget response? Conclusive proof why Cameron won't debate him head to head. Short, funny and very pointed. Maybe too little too late though

Glad he mentioned VAT , it was the Conservatives who increased the top rate from 12½% to 15% in 1979 but at the same time raised the lower rate from 8% to 15%. In 2010 they denied prior to the GE there would be no increase in VAT , once in power with the LibDems they raised it from 17½% to 20% in their first budget. What are the chances VAT rises to 23% (the same rate as Ireland) if they are re-elected ?

 

[perseus]

I'm going out for a run - looking forward to masses of good news when I come back - some money off cider tax being the obvious big ticket item of the day.

Cider is unfairly overtaxed.

 

[Bold Seagull]

Capital Gains is tax on someone's secondary wealth, i.e. second homes, stock and shares etc. The top rate of CGT is 28%. IHT is on their home and what's left in their accounts to cover their living costs, and it's charged at 40%.

'Their' !? But they are dead!

The person who dies doesn't pay the tax.

The people paying the tax are those inheriting, they are gaining that wealth.

 

[Pavilionaire]

Glad he mentioned VAT , it was the Conservatives who increased the top rate from 12½% to 15% in 1979 but at the same time raised the lower rate from 8% to 15%. In 2010 they denied prior to the GE there would be no increase in VAT , once in power with the LibDems they raised it from 17½% to 20% in their first budget. What are the chances VAT rises to 23% (the same rate as Ireland) if they are re-elected ?

The chances are £NIL. They have enough budget available NOT to have to do this. The Irish economy is in crisis, ours is merely in some difficulty.

VAT at 20% is already a burden on small businesses selling to non-VAT registered customers, so 23% would represent a big price increase for them AND the costs of those businesses that are NOT VAT-registered.

I think this government likes the 20% figure - that's the basic rate of income tax, corporation tax for SMEs and VAT, and I can't see it changing.