poppet2 Posted October 10, 2013 Author Share Posted October 10, 2013 If you're talking about inheritance tax it starts at £325,000 or 650k for a couple... estates below that pay none.. But that figure is not just for property but for your entire estate, ie. cash, jewellery, cars, furniture, antiques, the total amount you are worth and leave behind. It's unfair because why should these other items be included and lumped in and taxed at a rate of 40%. I could understand if it was just your property. Link to comment Share on other sites More sharing options...
truman Posted October 10, 2013 Share Posted October 10, 2013 But that figure is not just for property but for your entire estate, ie. cash, jewellery, cars, furniture, antiques, the total amount you are worth and leave behind. It's unfair because why should these other items be included and lumped in and taxed at a rate of 40%. I could understand if it was just your property. £650k is quite a large amount...why should your house be treated differently to other assets you own? Link to comment Share on other sites More sharing options...
poppet2 Posted October 10, 2013 Author Share Posted October 10, 2013 £650k is quite a large amount...why should your house be treated differently to other assets you own? £325k isn't, which would buy you only a 2 bed flat in London. Link to comment Share on other sites More sharing options...
truman Posted October 10, 2013 Share Posted October 10, 2013 £325k isn't, which would buy you only a 2 bed flat in London. Yet you want homes to be taxed but not jewellery..? Link to comment Share on other sites More sharing options...
poppet2 Posted October 10, 2013 Author Share Posted October 10, 2013 Yet you want homes to be taxed but not jewellery..? No, I object to all other assets being included. Link to comment Share on other sites More sharing options...
ccit Posted October 10, 2013 Share Posted October 10, 2013 Once you have repaid a mortgage and passed the age of say 65/70 it is preferable to rent;a fixed sum is payable and the risks associated with ownership such as repairs are borne by the landlord.I think you have the right idea Shogun. This is not always the case. Some people quite sensibly prepare for this stage of their life by downsizing and acquiring a property that is easy to manage. They may also have savings put aside for potential repairs. Where do you think rental properties are going to come from? There are simply not enough suitable ones. Huge waiting lists are the norm for older person Council properties. Private rentals are rarely appropriate and are very expensive. Add to this the lack of security and the older person could end up with real problems. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted October 10, 2013 Share Posted October 10, 2013 Anyway, gifts between spouses are exempt from IHT. Link to comment Share on other sites More sharing options...
RutlandFlyer Posted October 10, 2013 Share Posted October 10, 2013 The more I think about this, the more I think it's just a lifestyle choice. You expose yourself to more risk by buying and you have more flexibility renting, but you're going to end up paying about the same either way. Yes, your landlord pays for repairs if you're renting a property, but where does he get the money to pay for those repairs? In most cases it's going to be built into the rent you're paying. The biggest advantage to buying is that eventually you own your property outright, making it easier to get by on a reduced income in your later years. The paying-for-nursing-home argument doesn't seem to hold much water to me. My nan has recently gone into a home and the money from her house will cover her care costs for the next two years, after which the state will pay. Had she not had property, she'd have gone into the exact same home so esentially paying for old age care is just a massive tax. There are benefits to renting, too. Chiefly the flexibility of it. Don't like the part of town you're in? Move. Fancy taking a job elsewhere in the country, or abroad? Go right ahead. You're also not exposed directly to conditions in the housing market, so if there's a crash you don't have to worry about negative equity...immediately (though when you come to renew or move you might feel it). You do pay a premium though, as you're covering at the very least the mortgage and a margin, probably a bit more on top in case of repairs and insurance. For me, I chose to own because I've never really felt at home in the properties I've rented. It seems like there are more bad landlords out there than good ones and there's always something broken that isn't getting fixed, inspections to be suffered, ripoff fees from letting agents and crooked attempts to part you from your deposit at the end of it all. I know I may risk losing what I've put into this house if the market turns bad, or if I lost my job, but I feel at ease in it in a way I never did while I was renting and I'm prepared to put my deposit on the line to try and make that permanent. Link to comment Share on other sites More sharing options...
Shogun Posted October 10, 2013 Share Posted October 10, 2013 Im going to sell my house when I start getting on a bit,then I'm going to have a cruise around the world and spend it on frivolous things, when all the moneys gone dump myself on the council and hopefully get a nice little flat or a bungalow somewhere to end my days.. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted October 10, 2013 Share Posted October 10, 2013 But, by then, there might not be a Council on which to dump yourself... Link to comment Share on other sites More sharing options...
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