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

[999tigger]

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.

 

As has been pointed out there are extensive reliefs for passing on family businesses.

[gomgeg]

As has been pointed out there are extensive reliefs for passing on family businesses.

What about savings and homes?

The politics of envy it seem. Another way to stop the incentive of bettering yourself. As I said earlier, the lowest common denominator.

[max]

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.

 

You still don't understand, do you? No one, I'll repeat that, no one pays inheritance tax. The person who accumulated more wealth than they could spend in their lifetime doesn't as they are dead. The person inheriting the residue doesn't pay tax as it's already paid before they get anything.

 

Do you understand now?

[gomgeg]

You still don't understand, do you? No one, I'll repeat that, no one pays inheritance tax. The person who accumulated more wealth than they could spend in their lifetime doesn't as they are dead. The person inheriting the residue doesn't pay tax as it's already paid before they get anything.

 

Do you understand now?

DO YOU UNDERSTAND, I've got no axe to grind on this as what we leave our kids won't be enough to pay inheritance tax. But I'm also not jealous as you seem to be of someone who's achieved something. You again seem to be one of those who think it's someone else's responsibility to look after your kids.

It might be an idea for some people to instil in their kids a sense of self responsibility.

[999tigger]

What about savings and homes?

The politics of envy it seem. Another way to stop the incentive of bettering yourself. As I said earlier, the lowest common denominator.

 

Thats all you seem able to say. IHT is quite easy to minimise with decent planning and advice. It doesnt stop people retaining wealth. Go and look how it works. It was actually introduced by a Tory government. I dont have any deep views about it, its just another tax, but silly to get your knockers in a twist rather than just getting some decent advice and planning to leave your affairs in order for when you pass on.

[gomgeg]

Thats all you seem able to say. IHT is quite easy to minimise with decent planning and advice. It doesnt stop people retaining wealth. Go and look how it works. It was actually introduced by a Tory government. I dont have any deep views about it, its just another tax, but silly to get your knockers in a twist rather than just getting some decent advice and planning to leave your affairs in order for when you pass on.

I ain't getting my knockers in a twist, as I've already said it won't affect us.

If it's so easy to avoid paying it won't be a problem for anybody so none will be collected.

And just because I've said it before doesn't mean it's not relevant. But then again I've probably got into the habit by reading all the left wing rhetoric repeated on here, getting their knickers in a twist worrying that they might have to support their own families.

So I won't be doing that again tonight as I'm now going for a pint to unwind my knockers.

[exxon]

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.

 

Actually I do know a farmer who took the advice of the financial planners and stuck 35 acres of his farm in his son's name, thus planning for the time when he parted this mortal toil. Unfortunately his son then split from his wife and the 35 acres of the farm went in the settlement. Now the whole family has to live off a farm that is 35 acres less than they need to feed the dairy herd.

 

---------- Post added 27-10-2015 at 20:23 ----------

 

You still don't understand, do you? No one, I'll repeat that, no one pays inheritance tax. The person who accumulated more wealth than they could spend in their lifetime doesn't as they are dead. The person inheriting the residue doesn't pay tax as it's already paid before they get anything.

 

Do you understand now?

 

Yes it is just that an inherited business is rather smaller, short on cash and less able to compete.

 

 

Do you understand now?

Edited October 27, 2015 by exxon

[WiseOwl182]

Some of the replies on this thread make me very angry, actually.

 

Why should the government get a slice of someone's inheritance? Their parents have worked hard, saved hard, or got lucky, who cares - if they want to pass it on to their children they should be free to do so without getting it taxed. If it's a house and the child then sells it, the sale is liable for Capital Gains tax anyway, as it's not their main home.

 

Whether or not other people think the child deserves it or if it will make them spoilt is nobody else's business - it's the final act the parent will do in bringing up their offspring, and it's as little to do with the government, or anyone on an internet forum, as what story they read them at bedtime when they were 4 years old.

 

The threshold at £325k was far too low given the huge increase in house prices. If there has to be one, £1m is about right.

 

PS. Justin Smith - presumably you will be putting your money where your mouth is, and when your parents die, you will be donating all of your one-third share of the bungalow by the Thames to charity, or as voluntary tax? No? Didn't think so.

[exxon]

Some of the replies on this thread make me very angry, actually.

 

Why should the government get a slice of someone's inheritance? Their parents have worked hard, saved hard, or got lucky, who cares - if they want to pass it on to their children they should be free to do so without getting it taxed. If it's a house and the child then sells it, the sale is liable for Capital Gains tax anyway, as it's not their main home.

 

Whether or not other people think the child deserves it or if it will make them spoilt is nobody else's business - it's the final act the parent will do in bringing up their offspring, and it's as little to do with the government, or anyone on an internet forum, as what story they read them at bedtime when they were 4 years old.

 

The threshold at £325k was far too low given the huge increase in house prices. If there has to be one, £1m is about right.

 

PS. Justin Smith - presumably you will be putting your money where your mouth is, and when your parents die, you will be donating all of your one-third share of the bungalow by the Thames to charity, or as voluntary tax? No? Didn't think so.

 

Having looked into the situation unless the thresholds are raised the best option is to buy a nice villa in Tuscany and live out your final years over there. If you want to leave it to your kids along with a wad of cash you can. On just a million quid such a move will save you £270,000. If you don't like Italy the USA will do nicely as will many other places.

[999tigger]

Actually I do know a farmer who took the advice of the financial planners and stuck 35 acres of his farm in his son's name, thus planning for the time when he parted this mortal toil. Unfortunately his son then split from his wife and the 35 acres of the farm went in the settlement. Now the whole family has to live off a farm that is 35 acres less than they need to feed the dairy herd.

 

 

Life happens though. Thats not to do with inheritance tax its to do with divorce and relationships. It should have been obvious assets would have been at risk if the son was married if thy ever divorced. Noy really an example or reason not to get good advice.