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Post by see2 on Jan 2, 2024 21:30:07 GMT
I havent read through the entire thread so apologies if this has already been mentioned. I believe the threshold for inheritance tax is £325,000, which to be honest, isn't much. The 'average' house price in this country is currently £290,000 and there is only one way house prices go. There must be millions of people in this country who's estate is valued well in excess of £325,000, but are not by any stretch of the imagination wealthy or rich. Inheritance tax is a punishment tax, a punishment for being frugal and saving and struggling to pay that mortgage for years and quite obviously it should be scrapped. If we must have an inheritance tax the threshold should be an absolute minimum of £1 million. People should not be punished because they grafted for years to pay a mortgage. The grafters are not punished, they are dead. |
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Post by Red Rackham on Jan 2, 2024 21:35:18 GMT
I havent read through the entire thread so apologies if this has already been mentioned. I believe the threshold for inheritance tax is £325,000, which to be honest, isn't much. The 'average' house price in this country is currently £290,000 and there is only one way house prices go. There must be millions of people in this country who's estate is valued well in excess of £325,000, but are not by any stretch of the imagination wealthy or rich. Inheritance tax is a punishment tax, a punishment for being frugal and saving and struggling to pay that mortgage for years and quite obviously it should be scrapped. If we must have an inheritance tax the threshold should be an absolute minimum of £1 million. People should not be punished because they grafted for years to pay a mortgage. The grafters are not punished, they are dead. Pillock. |
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Post by Bentley on Jan 2, 2024 21:50:32 GMT
If you have paid tax on income , acquired some savings and paid the mortgage on your house , why should your estate be taxed ?
Because of ‘ rich’ people .
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Post by Pacifico on Jan 2, 2024 21:56:25 GMT
So who advocated it as a policy? - or is this just something you were told by the Guardian or Mirror and were too trusting/gullible to ever check? As I have already shown, I HAVE NEVER CLAIMED IT WAS A POLICY, and you are being deliberately (I assume) slow on the uptake. so who advocated this 'idea'? - someone must have for you to believe it was true.. |
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Post by Red Rackham on Jan 2, 2024 22:09:57 GMT
If you have paid tax on income , acquired some savings and paid the mortgage on your house , why should your estate be taxed ? Because of ‘ rich’ people . Precisely. An inheritance tax threshold of £325,000 does not give anyone the incentive to work hard to pay a mortgage off. Why bother if you're just going to get hammered by HMRC. Better off renting and pissing your bank balance up the wall. Edit. On reflection, apologies to anyone who is renting and struggling, as I'm sure many people are. I'm not having a poke at you. But for anyone who is renting and struggling, bashing people with inheritance tax is not going to help you. |
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Post by dappy on Jan 2, 2024 22:35:27 GMT
Red, with respect, if you going to comment on the merits of keeping inheritance tax as it is or reducing or abandoning it, at least make sure you understand it.
If you take a typical married couple owning a house jointly, first death leaving assets to their spouse, second death leaving assets to their two children, the amount of assets free of inheritance tax is £1m
So if the total estate is worth 800,000 no IHT is paid and each child inherits £400,000
If the estate is £1200000, £80,000 IHT is paid (7.5% of the estate) and each child inherits £560,000
If the estate is £1500000, £200,000 IHT is paid (13%) and each child inherits £650,000
Even if the estate is £2000000, only £400,000 IHT (20%) is due and each child will get £800,000
Your choice to judge whether that is fair taxation, but at least understand how it works before judging.
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Post by Pacifico on Jan 2, 2024 22:43:02 GMT
I just did an online IHT calculator and it came to a 40% tax rate and almost £700k in tax.. Kerching!..  |
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Post by dappy on Jan 2, 2024 23:05:45 GMT
In which case if you are married/a widower and are leaving your estate to your kids or grandkids, you must have assets of around £2.5m , in which case your say two kids will each inherit £900,000 each and the total tax charge will be a little under 30%.
Again for others to decide whether that is fair.
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Post by Red Rackham on Jan 2, 2024 23:26:37 GMT
Red, with respect, if you going to comment on the merits of keeping inheritance tax as it is or reducing or abandoning it, at least make sure you understand it. If you take a typical married couple owning a house jointly, first death leaving assets to their spouse, second death leaving assets to their two children, the amount of assets free of inheritance tax is £1m So if the total estate is worth 800,000 no IHT is paid and each child inherits £400,000 If the estate is £1200000, £80,000 IHT is paid (7.5% of the estate) and each child inherits £560,000 If the estate is £1500000, £200,000 IHT is paid (13%) and each child inherits £650,000 Even if the estate is £2000000, only £400,000 IHT (20%) is due and each child will get £800,000 Your choice to judge whether that is fair taxation, but at least understand how it works before judging. You are correct I don't fully understand inheritance tax, that's what solicitors are for. However, why should I pay HMRC anything? I worked hard, I saved hard, and at times I struggled to pay a mortgage because I wanted financial security in later life. On the flip side, I have never claimed one thin penny in benefits of any sort, not one thin penny. When HMRC are calculating inheritance tax perhaps that should be taken into consideration. |
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Post by Ripley on Jan 2, 2024 23:39:14 GMT
I havent read through the entire thread so apologies if this has already been mentioned. I believe the threshold for inheritance tax is £325,000, which to be honest, isn't much. The 'average' house price in this country is currently £290,000 and there is only one way house prices go. There must be millions of people in this country who's estate is valued well in excess of £325,000, but are not by any stretch of the imagination wealthy or rich. Inheritance tax is a punishment tax, a punishment for being frugal and saving and struggling to pay that mortgage for years and quite obviously it should be scrapped. If we must have an inheritance tax the threshold should be an absolute minimum of £1 million. People should not be punished because they grafted for years to pay a mortgage. I think inheritance tax is abominable. It's a tax on assets that were acquired with already taxed income, but the government takes another bite when those assets become someone else's possession. I don't see any justification for it. |
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Post by Red Rackham on Jan 2, 2024 23:42:54 GMT
I havent read through the entire thread so apologies if this has already been mentioned. I believe the threshold for inheritance tax is £325,000, which to be honest, isn't much. The 'average' house price in this country is currently £290,000 and there is only one way house prices go. There must be millions of people in this country who's estate is valued well in excess of £325,000, but are not by any stretch of the imagination wealthy or rich. Inheritance tax is a punishment tax, a punishment for being frugal and saving and struggling to pay that mortgage for years and quite obviously it should be scrapped. If we must have an inheritance tax the threshold should be an absolute minimum of £1 million. People should not be punished because they grafted for years to pay a mortgage. I think inheritance tax is abominable. It's a tax on assets that were acquired with already taxed income, but the government takes another bite when those assets become someone else's possession. I don't see any justification for it. You are absolutely correct, inheritance tax is a punishment tax. |
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Post by dappy on Jan 2, 2024 23:45:40 GMT
Government needs tax revenue to pay for schools and healthcare. Given a choice between taxing the dead (with assets of over £1m) and taxing the living (people perhaps struggling to pay their mortgage at the same time as raising their kids) many may say better choice is to tax the dead.
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Post by Red Rackham on Jan 3, 2024 0:01:29 GMT
If I was a layabout who had never saved and relied on the benefit system and cost the state £millions then HMRC would not be interested in me. But even though I left school with no qualifications I have never been a layabout and I've never relied on the state. When I left the army I worked bloody hard, and I saved hard because I wanted a comfortable retirement. I'm not going into my financial arrangements obviously. Suffice to say Mrs R and I are OK, and I can avoid inheritance tax but that's only because of my solicitor who understands tax. Nothing illegal obviously, but it pisses me off that I had to go to a solicitor (I already knew her, family solicitor) to... get things sorted out so on my death HMRC doesn't fleece me and the local authority doesn't take our house (Bungalow). Trust me kids there are things you can do, but you have to do it years before you die.
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Post by Red Rackham on Jan 3, 2024 0:08:49 GMT
Government needs tax revenue to pay for schools and healthcare. Given a choice between taxing the dead (with assets of over £1m) and taxing the living (people perhaps struggling to pay their mortgage at the same time as raising their kids) many may say better choice is to tax the dead. Tell that to 23 million people in this country who claim benefits and as such are a net financial burden. For many people benefits are a way of life but I have never claimed any benefits in my life, I have never been a financial burden. But for some ridiculous reason I'm expected to hand my assets or a proportion of, to the state rather than my kids. No I'm afraid not. It's obscene. |
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Post by dappy on Jan 3, 2024 0:11:18 GMT
The local authority has no jurisdiction over inheritance tax.
In your situation where you are married and I assume will leave most of your assets to your kids, you will only pay inheritance tax if your estate is over £1m.
If that is the case, why should the government not take some tax revenues to pay for schools rather than take it from struggling young families raising kids and paying mortgages?
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