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[Politics] Inheritance Tax



zefarelly

Well-known member
NSC Licker Extraordinaire
Jul 7, 2003
21,612
Sussex, by the sea
You don't want your children to suffer an Inheritance Tax bill?


It's not that simple . . .you get taxed on that too. . . . Unless you get the timing right and have the right bean counter etc etc.

It's a hard line tax . . . IMO it should slide incrementally . It affects those who are lucky enough to inherit in so many different ways. usually the middle ground suffer most proportionally, the rich get richer . . .the poor stay poor, repeat to fade. . . .
 


East Staffs Gull

Well-known member
Jan 16, 2004
1,421
Birmingham and Austria
It's money that has already been subject to tax. Always been a bit rum to tax the money twice. :shrug:
Just playing devil’s advocate, but the same money could be taxed over and over again. If you used your already taxed savings to pay a plumber, the plumber would pay tax on that money. The plumber can’t argue that it has already been taxed once.
 

dejavuatbtn

Well-known member
Aug 4, 2010
7,068
Henfield
Hold off dying for 7 years and it's tax free, baby.
Unless you go into care and need money for fees. If you give loads away it can be deemed to be squirrelling money away to avoid care fees. It can then be reclaimed apparently.
I just wish they’d give more tax relief/benefits to those at the bottom of the food chain. Utility vouchers whatever.
 


drew

Drew
Oct 3, 2006
22,922
Burgess Hill
It's money that has already been subject to tax. Always been a bit rum to tax the money twice. :shrug:
Depends how you look at. The beneficiary has not paid any tax on the inheritance they have just received. Tax may have been paid by the deceased during their lifetime but that's irrelevant. Also, many estates have their value accrued purely because the value of property has risen and no tax had been paid on that capital gain.
 

Colonel Mustard

Well-known member
Jun 18, 2023
1,864
Depends how you look at. The beneficiary has not paid any tax on the inheritance they have just received. Tax may have been paid by the deceased during their lifetime but that's irrelevant. Also, many estates have their value accrued purely because the value of property has risen and no tax had been paid on that capital gain.
But it’s not the beneficiary who is being taxed. It’s the dead person, or rather his/her estate.

I’m not an IHT fan but I don’t really buy the double-taxation argument. As you say, the lion’s share of a typical estate is typically not a savings account but the value of a property which, for most elderly people, has grown hugely over the years, way above inflation, and on which no tax is ever paid.
 

Baldseagull

Well-known member
Jan 26, 2012
10,836
Crawley
if there is one group of people that don't need the money, its dead people. What seems a bit unfair is it's the estate that is taxed, not the recipients, an only child can inherit a large lump tax free, 6 children and grandchildren named in a will could recieve a small amount each that has been taxed to become smaller.
Personally, I would say tax man take the lions share of any estate, if only I trusted the government to spend it wisely. Probably better to take 80% if there is no spouse, and distribute the wealth of the dead evenly among the entire adult population of the UK as a Christmas bonus.
 


Berty23

Well-known member
Jun 26, 2012
3,136
The fact is that people work for their children. If you tax them enough, they won't bother.
Do you know what proportion of estates paid inheritance tax last year? I bet it is far lower than you think if you are using lines like this one.
 

Cheshire Cat

The most curious thing..

Paulie Gualtieri

Bada Bing
NSC Licker Extraordinaire
May 8, 2018
8,859
More than a sweeping generalisation. My parents estate involved about 7 forms of 20+ pages each and most of the questions I didn't understand a word of. Thankfully a kind NSC'er came to my rescue.
Understanding the high level allowances as to whether it is likely to apply rather than the completion of forms / probate was what I meant.
 


Herr Tubthumper

Well-known member
NSC Licker Extraordinaire
Jul 11, 2003
58,882
The Fatherland
More than a sweeping generalisation. My parents estate involved about 7 forms of 20+ pages each and most of the questions I didn't understand a word of. Thankfully a kind NSC'er came to my rescue.
How did your issue with the HMRC go? If I remember correctly there was a difference of opinion over the value of all the properties you inherited?
 

Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Licker Extraordinaire
Oct 27, 2003
20,888
The arse end of Hangleton
How did your issue with the HMRC go? If I remember correctly there was a difference of opinion over the value of all the properties you inherited?
Not heard from them - given every property has sold below the estimated value I don't think they have a leg to stand on.
 

Herr Tubthumper

Well-known member
NSC Licker Extraordinaire
Jul 11, 2003
58,882
The Fatherland
Not heard from them - given every property has sold below the estimated value I don't think they have a leg to stand on.
Fair enough.

I’m having my own battle with them, trying to get 745 quid they owe me. It’s been a total joke and has lasted over a year now.
 

Jim in the West

Well-known member
NSC Licker Extraordinaire
Sep 13, 2003
4,481
Way out West
I am absolutely staggered that the Tories are thinking that reducing IHT is in any way an answer to any of the myriad problems currently facing the UK.

Actually, on second thoughts, I’m not!!! Self-serving bastards who are only interested in a small minority of the population who will probably vote for them.

And any economic benefit (if there is one) would only feed through many years/decades in the future. It’s purely to buy votes.

Hopefully the majority of the electorate will be disgusted by this further evidence of the Tory party’s disdain for ordinary people.
 


Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Licker Extraordinaire
Oct 27, 2003
20,888
The arse end of Hangleton
Fair enough.

I’m having my own battle with them, trying to get 745 quid they owe me. It’s been a total joke and has lasted over a year now.
Good luck with that ! I'm looking forward to claiming back the IHT I paid given the estate value has been below the original threshold ..... I'll probably be dead myself by the time it's all sorted.
 

nicko31

Well-known member
Jan 7, 2010
17,384
Gods country fortnightly
It's money that has already been subject to tax. Always been a bit rum to tax the money twice. :shrug:
When my old man passes I will inherit but I didn’t earn that money he did.

I should pay tax at the marginal rate.
 

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