Cut inheritance tax, I'll pay more tax so some kids can get a free house

[Funky_Gibbon]

I find it odd that so many people on here talk about "when I pop my clogs I want all my money to go to my kids" when few in Sheffield will ever pay Inheritance Tax even at the present threshold of a minimum house value of £325,000. Only a small proportion of houses anywhere in the country outside of London are worth more than that. Raising it upto £1million is little more than an election bribe to the wealthy at the expense of everyone.

 

It's not a surprise that many MPs will be quids in from this move either.

[slacko]

When you have a freehold (fee simple) on land, it represents absolute ownership of real property but with certain rules, those being taxation, eminent domain, police power, and another i can't remember.

 

In other words, by owning the land you are giving permission to be taxed.

 

So, not at all obvious and not well known lol

 

Should also note that you don't entirely own the land either - Allodial title is held by the crown on all land .

 

 

Decent answer. Cheers! I didn't know that.

 

It still irks me a bit though. Especially when I think that if I buy something, pay tax on it, own it and then decide to give it to you... you don't have to pay for receiving it.

 

Seems like they do it on houses because they have an attractive value to apply the Inheritance Tax on.

[Justin Smith]

Don't you think we pay enough tax...?

 

This is the classic confusion, it also applies to the arguments about fuel tax.

 

There are two totally separate arguments :

 

One.

How much tax we pay and if we actually want the services (like the NHS) that this tax provides.

 

Two.

Where we get the tax. If we don`t get it from inheritance tax, or fuel tax for that matter, then assuming we want the same level of services, it`s got to come from somewhere else. That somewhere else is usually income tax, and as a basic premise I think income tax should be kept low to encourage people to work. Inheritance tax is more likely to have the opposite effect, at least for the recipients of said largesse.

[truman]

. Inheritance tax is more likely to have the opposite effect, at least for the recipients of said largesse.

 

 

These days by the time anyone inherits anything they're more or less retired themselves..or are you implying that there are masses of orphaned 10 year olds living on the estate of their parents?

[truman]

I find it odd that so many people on here talk about "when I pop my clogs I want all my money to go to my kids" when few in Sheffield will ever pay Inheritance Tax even at the present threshold of a minimum house value of £325,000. Only a small proportion of houses anywhere in the country outside of London are worth more than that. Raising it upto £1million is little more than an election bribe to the wealthy at the expense of everyone.

 

It's not a surprise that many MPs will be quids in from this move either.

 

If,as you say,only a small proportion of estates will be affected then IHT is little more than politics for appearance sake...

[Justin Smith]

These days by the time anyone inherits anything they're more or less retired themselves..or are you implying that there are masses of orphaned 10 year olds living on the estate of their parents?

 

It`s the general principle of the thing, do you tax earnt or unearnt income ?

[slacko]

These days by the time anyone inherits anything they're more or less retired themselves..or are you implying that there are masses of orphaned 10 year olds living on the estate of their parents?

 

The average age of women giving birth is around 29

Average life expectancy is around 79

 

So I reckon we can say the average childs age when inheriting is about 50.

 

Hardly "more or less retired".

[Justin Smith]

The average age of women giving birth is around 29

Average life expectancy is around 79

 

So I reckon we can say the average childs age when inheriting is about 50.

 

Hardly "more or less retired".

 

OK, let`s use the term "offspring" then.

The point is that someone will get a load of dosh that they haven`t even earnt themselves, and they also expect to get it tax free !

Cheeky monkeys ! !

[slacko]

OK, let`s use the term "offspring" then.

The point is that someone will get a load of dosh that they haven`t even earnt themselves, and they also expect to get it tax free !

Cheeky monkeys ! !

 

See what you mean. A bit like benefits?

[carosio]

I'm not overly familiar with the Inheritance Tax and it's intricacies, but to me...

 

If I buy a house AND the land it's on AND I pay for it in full, it's mine.

In my view, I should be able to give it to who I please or leave it to who I please when I die and not have them have to pay for receiving it.

 

If I own something and pass it on to another, that's my affair.

So for that reason, Inheritance Tax, to me, seems morally wrong.

 

If we are talking about working hard for something, what work has the tax man done to warrant the Inheritance Tax?

 

Or am I missing something blindingly obvious?

 

If a child becomes joint beneficial owner then the house will pass to him upon the parents' death, provided the latter live for another 7 years. Also, if you gift someone more than £3k in a year then the recipient has to pay tax (at 40% I think), although this would seem quite easy to avoid. An exception is a gift towards a son's or daughter's wedding.