Conservative plan to not charge inheritance tax on homes worth under1m

[hackey lad]

Growing economy...My posterior....

 

We're a country (according to Cameron) who needs savage cuts (but won't say where), over the next five years....(or more)....I can't believe anyone falls for this nonsense...

 

and I cant believe anyone who falls for the same old labour rhetoric

[El Cid]

If the family can't cope they can sell the house and pay for someone else to care for their elderly relative, but if they can cope its nice that government is no longer going to tax them on the house they inherit.

 

I would increase inheritance tax from 40% to at least 50% and just apply the tax to assets above £100,000 and homes above £500,000. Assets should be treated differently to first homes, perhaps they are? Many people get around inheritance tax by giving away assets before death.

[loraward]

I would increase inheritance tax from 40% to at least 50% and just apply the tax to assets above £100,000 and homes above £500,000. Assets should be treated differently to first homes, perhaps they are? Many people get around inheritance tax by giving away assets before death.

 

The money someone used to buy an house as already been taxed, so I can't see why it should be taxed again when they die.

[PeteMorris]

The money someone used to buy an house as already been taxed, so I can't see why it should be taxed again when they die.

 

But that's just the point...It won't be taxed, because it will already have gone...to pay for care...

[loraward]

But that's just the point...It won't be taxed, because it will already have gone...to pay for care...

 

No it won't because most people don't go into care.

[PeteMorris]

No it won't because most people don't go into care.

 

How do you know?

[loraward]

How do you know?

 

I checked and even gave the figures in an earlier post.

 

http://www.sheffieldforum.co.uk/showpost.php?p=10970035&postcount=21

[Guest sibon]

I thought that taxman said it would increase the threshold up from £325,000?

 

The IHT threshold is £325 000 per person. If a house is in joint ownership ( for example, husband and wife), both allowances are available to mitigate IHT. So, the IHT threshold for married couples is effectively £650 000.

[JFKvsNixon]

The IHT threshold is £325 000 per person. If a house is in joint ownership ( for example, husband and wife), both allowances are available to mitigate IHT. So, the IHT threshold for married couples is effectively £650 000.

 

Does the allowance carry over if a partner dies? As someone said earlier it's unusual for both partners to die at the same time.

[Guest sibon]

Does the allowance carry over if a partner dies? As someone said earlier it's unusual for both partners to die at the same time.

 

I've just done the probate on my parents' estate. My mum died thirty years ago and I still got to use her allowance. You can backdate it to about 1974, if I remember correctly.

 

So, this particular move from the Tories is simply a tax cut for those with estates over £650 000. There won't be too many of those outside of the South East.