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

[TJC1]

My question would be why should a child in Sheffield inherit the family 3 bedroomed semi-detached house in a nice area without paying inheritance tax when a similar child in a similar house in Oxford would pay so much inhertance tax that they might have to sell the property because they couldn't afford to live in it?

 

thats the issue. You could be sitting on a potential £1.5 million flat in London, yet not have a pot to **** in.

[exxon]

thats the issue. You could be sitting on a potential £1.5 million flat in London, yet not have a pot to **** in.

 

It goes way beyond that. How many family businesses or even farms could take a 40% inheritance tax hit?

[TJC1]

It goes way beyond that. How many family businesses or even farms could take a 40% inheritance tax hit?

 

its a good point. I would do away with inheritance tax all together.

 

It's a wealth creation killer much greater than high taxation.

[exxon]

Yes of course. What's your point? Make a comparison between a single parent family in Sheffield and one in Oxford. The child of the one in Oxford will be far better off than the one in Sheffield if they have to pay ANY tax. By definition attracting some inheritance tax means you are inheriting a large estate.

 

That's a very petty way of looking at it. The one in Sheffield would get a home and no tax liability. The one in Oxford would lose the home so you think that makes them better off.

 

I suppose the opinion polls say it all. 2/3 of the population would be in favour of increasing in inheritance tax threshold to £1 million. Most of those folk live south of Sheffield. I suppose that is because inheritance tax hardly affects anyone round here. But elsewhere it is a vote winner. It is the seats that Labour would have to win in an election where such a policy will gain votes for the tories. Labour may benefit in seats they already control.

 

---------- Post added 27-10-2015 at 16:45 ----------

 

its a good point. I would do away with inheritance tax all together.

 

It's a wealth creation killer much greater than high taxation.

 

I'm with you on that one. I have no problem with income tax or vat. I have no problem paying duty on booze or cigs or on petrol or extra tax on my car with a big engine. But small businesses are the future and I could see many going to the wall because of grasping tax men.

[999tigger]

It goes way beyond that. How many family businesses or even farms could take a 40% inheritance tax hit?

 

There are already reliefs available for passing on family businesses. People should do some tax planning and arrange their affairs to minimise or avoid taxes. Not hard.

[exxon]

There are already reliefs available for passing on family businesses. People should do some tax planning and arrange their affairs to minimise or avoid taxes. Not hard.

 

Yes I can see that. But if you are a teenager off to agricultural college and you've a £20K student loan, it probably hasn't occured to you. And if you are a 40 year old farmer struggling to pay off the inheritance tax from when you inherited the farm, the family home, and the business it probably wasn't something that occured to you either.

 

So when the parent gets crushed by a tractor the teenager comes home to the news that they inherited the busioness but will have to pay £400,000 for the benefit of becoming an orphan. Yes I can see how that could upset your day.

 

So how would you have planned for that?

[Justin Smith]

its a good point. I would do away with inheritance tax all together.

 

It's a wealth creation killer much greater than high taxation.

 

Inheritance is a wealth creation tool for those who inherit the money, that`s for sure. I think we should remember that increasing inheritance tax would mean a cut in income tax, thus encouraging people to work, or work harder. Now that`s wealth creation.

My experience with Sheffield Windows makes me even more sure that inherited wealth is not always a good thing......

 

Interestingly, in my case, I don`t think the person concerned would have her attitude had it been a business she`d personally established and grown, or indeed she`d bought with her own money [as opposed to being given it by her Dad].

 

Having said that I do have some sympathy if IHT affects a family business, but I`d be surprised if there weren`t mechanisms in the tax system to allow for that.

Edited October 28, 2015 by Justin Smith

[999tigger]

Yes I can see that. But if you are a teenager off to agricultural college and you've a £20K student loan, it probably hasn't occured to you. And if you are a 40 year old farmer struggling to pay off the inheritance tax from when you inherited the farm, the family home, and the business it probably wasn't something that occured to you either.

 

So when the parent gets crushed by a tractor the teenager comes home to the news that they inherited the busioness but will have to pay £400,000 for the benefit of becoming an orphan. Yes I can see how that could upset your day.

 

So how would you have planned for that?

 

Its the parents that deal with their own businesses and as business people they employ people like accountants and lawyers to give them advice. Some people make wills and others dont. Some people realise what their liabilities are and put time into looking after their affairs and soem dont. Youd think any business person would have the business sense to understand what would happen to their business. As i said there are reliefs available for passing on family businesses. If you were really worried about being crushed by a tractor then youd write a will and take advice, you might take life assurance out to cover any tax.

 

People do tax planning all the time. You must know lots of oprhans.

[TJC1]

It`s a wealth creation killer for those who inherit the money, that`s for sure. I think we should remember that increasing inheritance tax would mean a cut in income tax, thus encouraging people to work, or work harder. Now that`s wealth creation.

My experience with Sheffield Windows makes me even more sure that inherited wealth is not always a good thing......

 

Interestingly, in my case, I don`t think the person concerned would have her attitude had it been a business she`d personally established and grown, or indeed she`d bought with her own money [as opposed to being given it by her Dad].

 

Having said that I do have some sympathy if IHT affects a family business, but I`d be surprised if there weren`t mechanisms in the tax system to allow for that.

 

I don't think income taxation levels encourages or discourages people to work any more or less harder.

 

People in high taxation countries work just as hard as people in tax havens.

 

You do see an end result with income taxation, in the form of better services and wotnot.

 

knowing you have to pay 40% on an asset which has already been through the merry go round of taxation messes with your mind.

Edited October 27, 2015 by TJC1
.....

[gomgeg]

It goes way beyond that. How many family businesses or even farms could take a 40% inheritance tax hit?

It's a Labour Party thing, called the lowest common denominator, you work, build a business, save some money or buy a home then want to pass it on to your kids. That of course shouldn't be allowed, you should be taxed on it and that money passed on to those not capable of supporting their own families.