Quick question - inheritance tax...
Discussion
TwigtheWonderkid said:
If you're so convinced dead people pay the tax, then as none of them have complained about it after the event, we can safely assume they aren't bothered about it.
I'll bite, because that is possibly the stupidest comment I've read. The crux of your argument is that because a dead person hasn't complained it is therefore ok.... Genius. By that exact same reasoning, if someone creeps up behind you and shoots you, you don't mind because you're dead, therefore it doesn't matter to you if someone does it or not.....Just because you don't wish to provide the best possible start or continuance to your offspring's lives, don't assume that everyone is in the same boat. In fact why stop there, why let anyone inherit anything, do a full James Buchanan and make IHT 100%, surely you'd agree, let everyone earn everything each generation?
I'd be interested to know how many children + the estimated net worth is of those supporting IHT in this thread is, because it is another true envy tax.
More importantly, back to the OP, if the surviving wife has any children, now is the time to indulge in some estate planning, and start minimising the tax bill from her estate to the children. If memory serves she can start gifting to her children now, and she has to survive 7 years to avoid the IHT, though I think it may reduce for every year. Deeds of trust also help. I have a decent tax advisor if you'd like, reasonable to. As above it's a relatively optional tax, let tweedle dee and tweedle dumb pay it.
TwigtheWonderkid said:
HotJambalaya said:
Wow, I wonder on what knowledge basis you are saying that.
I wonder it because just the other day, I was chatting to a tax advisor about this issue, and her point was that in the UK, IHT is taxed on the source, NOT on the beneficiary. So for example, if someone in the cayman islands or some jurisdiction with no IHT died, and left me a wedge of cash I wouldnt be taxed a penny on it. The UK doesn't tax the beneficiary, so taking that into consideration, you are utterly, and totally incorrect about your assertion that the money being transferred to someone else has to pay tax on it, the person who died (and yes already paid tax on it) is taxed again....
If you're so convinced dead people pay the tax, then as none of them have complained about it after the event, we can safely assume they aren't bothered about it.I wonder it because just the other day, I was chatting to a tax advisor about this issue, and her point was that in the UK, IHT is taxed on the source, NOT on the beneficiary. So for example, if someone in the cayman islands or some jurisdiction with no IHT died, and left me a wedge of cash I wouldnt be taxed a penny on it. The UK doesn't tax the beneficiary, so taking that into consideration, you are utterly, and totally incorrect about your assertion that the money being transferred to someone else has to pay tax on it, the person who died (and yes already paid tax on it) is taxed again....
The fact is neither the dead person nor the recipient is taxed. The estate is taxed. And as for your assertion that tax has already been paid on it, we've already established that in many cases, with house price inflation, that isn't true. And even when it is, so what. Every time I pay vat, I am paying tax on money that's already been taxed. It's nothing special.
If you're so convinced that no one is bothered about IHT why not make it voluntary? That should work fine, those quite happy to allow a government to piss away the country's wealth can do so and those who aren't won't need to bother making sure their hard earned goes where they want it to.
Btw we don't all count our 'wealth' in terms of property inflation. For many, IHT is absolutely just another tax grab on already taxed earnings. Having said that most of those smart enough to get to that are also smart enough to outwit our hard of thinking bureaucracy.
HotJambalaya said:
TwigtheWonderkid said:
If you're so convinced dead people pay the tax, then as none of them have complained about it after the event, we can safely assume they aren't bothered about it.
I'll bite, because that is possibly the stupidest comment I've read. The crux of your argument is that because a dead person hasn't complained it is therefore ok.... Genius. 
Talk about spectacularly missing the sarcasm of a post!
OP, really it comes down to this doesn't it. You think that you have worked harder than anyone else has you have accumulated lots of money, you equate hard work with making money and can't really see how people with less money than you have worked harder. You begrudge the government taking your money as you think everyone who has no money is a scrounger.
You are wrong.
Life is roughly (And I am generalising)
Some people work hard and have lots of money.
Some people don't work hard and lots of money.
Some people work hard and don't have lots of money.
Some people don't work hard and don't have lots of money.
There are of course people that fall between these categories
Whilst there is an argument that IHT could be taxed at a more progressive rate and should be looked at, I'm not sure you would like the outcome of what the majority of voters in the UK would like it set at.
And yes, what do you care, you will not be around to feel bitter about. As the old saying goes, you can't take it with you.....
You are wrong.
Life is roughly (And I am generalising)
Some people work hard and have lots of money.
Some people don't work hard and lots of money.
Some people work hard and don't have lots of money.
Some people don't work hard and don't have lots of money.
There are of course people that fall between these categories
Whilst there is an argument that IHT could be taxed at a more progressive rate and should be looked at, I'm not sure you would like the outcome of what the majority of voters in the UK would like it set at.
And yes, what do you care, you will not be around to feel bitter about. As the old saying goes, you can't take it with you.....
Burwood said:
Craig, your point about not liking what most people would want/vote for is incorrect. 61% think IHT is wrong. Even among 18-24 yo's it's greater than 50%. All I'll say is in the US it's set at 5m dollars which is at least reasonable.
I will stand corrected if you can give me a source please?mph1977 said:
QuickQuack said:
Sorry old chap, but alas no, that is not a fact. A large proportion, yes. But not majority, let alone vast majority. ONS and HMRC publish the data on number estates paying IHT on a regional basis. Approximately 42% of estates subject to IHT are in London and South East. The data is available here, table 12.10b:
https://www.gov.uk/government/uploads/system/uploa...
Granted, 42% is a large proportion but it's well under half so not a majority, let alone "vast majority."
Anyway, it's too late to argue and I've had a glass of wine. Care to join?
and what;s the population of London and the South east ? 15 million ? ( oft quoted figure of around 8 -9 million in 'greater london ) https://www.gov.uk/government/uploads/system/uploa...
Granted, 42% is a large proportion but it's well under half so not a majority, let alone "vast majority."
Anyway, it's too late to argue and I've had a glass of wine. Care to join?
so 20ish percent of the population pay 40+ % of IHT ....
Craigyp79 said:
Burwood said:
Craig, your point about not liking what most people would want/vote for is incorrect. 61% think IHT is wrong. Even among 18-24 yo's it's greater than 50%. All I'll say is in the US it's set at 5m dollars which is at least reasonable.
I will stand corrected if you can give me a source please?http://www.cityam.com/212005/inheritance-tax-seen-...
Burwood said:
There are many stats. Not the one I read yesterday but says it all really.
http://www.cityam.com/212005/inheritance-tax-seen-...
As far as I can see that seems to be citing a poll that was conducted in 2014 when the threshold was around £325,000?http://www.cityam.com/212005/inheritance-tax-seen-...
It's now double that and rising to £1,000,000 no?
Here's another https://uk.isidewith.com/poll/773322240
No mixed message. Abolish 60% not up the threshold
No mixed message. Abolish 60% not up the threshold
Burwood said:
Here's another https://uk.isidewith.com/poll/773322240
No mixed message. Abolish 60% not up the threshold
I meant a recent independent poll, not a dubious one off the internet from last year that isn't even correct. No mixed message. Abolish 60% not up the threshold
I'm not thick, I do realise that if someone is asked whether they would be okay with paying 40% tax if someone was to give them £750,000 the answer would generally be no.
Another question might be; how do you suggest replacing the lost revenue? Capital gains tax on house sales sounds fairer.....
It's not that simple though and if, as you think, 60% of people in the UK think that abolishing IHT is the right thing to do why have none of the political parties put it in their manifestos?
And how do you suggest replacing the lost revenue? Capital gains tax on house sales sounds fairer.....
Another question might be; how do you suggest replacing the lost revenue? Capital gains tax on house sales sounds fairer.....
It's not that simple though and if, as you think, 60% of people in the UK think that abolishing IHT is the right thing to do why have none of the political parties put it in their manifestos?
And how do you suggest replacing the lost revenue? Capital gains tax on house sales sounds fairer.....
REALIST123 said:
Jasandjules said:
Twig, why do you suggest IHT is a fair tax?
Because he isn't wealthy enough to have the issue and he's envious of those who do. Absolutely guaranteed, whatever he claims. Unfortunately some people, who think that taxation should be set at whatever suits them best personally, are unable to stretch their minds far enough to grasp that not all of us think that way.
Burwood said:
TwigtheWonderkid said:
Jim1556 said:
IHT is disgusting and should be abolished! 
It really isn't, and it shouldn't. But in the case you quote, there isn't any to pay anyway.It's fine, in fact if anything the threshold shpould be dropped.
How they replace the revenue is irrelevant to this thread. Add it to fuel duty. Start collecting tax from google, amazon etc. that would pay for it. Here's a novel idea, control government spending. Stop handing out cash to anyone who asks for it such as economic migrants. Just some crazy ideas. You know, ideas which most would think reasonable.
I'm still waiting for your evidence that most want IHT but I doubt I'll see it. Some just can't accept they made an erroneous statement.
I'm still waiting for your evidence that most want IHT but I doubt I'll see it. Some just can't accept they made an erroneous statement.
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