Is it PotG?
Thrifty non-licker
Whether true or not, penalising those who have scrimped and saved to purchase a family home when they pop their clogs is not the way forward.
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[Finance] Rachel Reeves to reveal £20bn shortfall left by Conservative Government
- Thread starter Bob!
- Start date
BenGarfield
Active member
I`ve never said that. A nation with its own currency can spend as much as it likes but is limited only by the physical capacity of the economy in terms of real resources and inflation.
I think you miss the point I was making. You pass your house that you have worked hard for on to your children - and you feel your children shouldn't have to pay IHT on that. That's one thing.The house is legally owned by the owner and has been paid off at some point by parents.
I’m talking about an average house in an average street in Sussex, who when it’s time to pass on the family home to our kids, who we’ve lived their formtiave lives in that house, I don’t want them, when they sell it, to lose an even bigger chunk to the government. We’ve paid, NI, PAYE, car tax, etc on everting we buy our whole life, and we then have to make our children pay IHT on assets we have worked hard for when we die?
Why should they? It’s no ones money apart from theirs, if we say it is, as it is our asset!!
Children
But what I was asking was about your children. They will then have a house that they haven't worked hard for. Fine - lucky them.
But when they die - what are your views? Your children haven't 'worked hard' for the house you left them, so do you think it is then fair that your grandchildren should get a huge untaxed windfall - or do you think it it right that they should pay some tax on what is effectively an unearned asset that neither they nor their parents 'worked hard' for?
Please don't deflect the question on a basis that it's a long time away or something - because many people are in this position right now - that is, grandchildren of the first home owners.
As to average house in an average street in Sussex, I guess you know that IHT is only payable on the amount over and above the threshold - not the whole lot? In which case it's likely to be pretty minimal. Unless your view of 'average' is different from mine?
BBassic
I changed this.
- Jul 28, 2011
- 12,809
Not to derail but there's a very good book about class in the 21st Century, if you're interested in that sort of thing:
Social Class in the 21st Century
A fresh take on social class from the experts behind the BBC's 'Great British Class Survey'. Why does social class matter more than ever in Britain today? How has the meaning of class changed? What does this mean for social mobility and inequality? In this book Mike Savage and the team of...
www.penguin.co.uk
Since it was four years ago shouldn’t the Tories have put up taxes even more to pay off the debt within the term of the Parliament?
Surely we’d have all understood?
Rdodge30
Well-known member
- Dec 30, 2022
- 532
Capital Gains Tax - Corporation Tax
LamieRobertson
Not awoke
Interesting point….which taxes though?
I’m assuming not those such as income tax….national insurance….your average person being hit by increasing electricity/gas costs amongst other things…higher interest rates on borrowing wouldn’t have been that happy
Machiavelli
Well-known member
96%* of those that do that won't be paying a penny. If you're one of the 4% then I'll be delighted that your spawn have to hand over some money to the state.
* the figure is actually lower than 96% but not by a considerable amount
worthingseagull123
Well-known member
- May 5, 2012
- 2,664
They cannot do that without a national scrappage scheme.
That would cost tens of billions.
Why not income tax? As @Greenbag50 acknowledges the debt was huge and necessary.
And those interest rates? High because Liz The Lettuce did indeed fiddle with tax. She cut it
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,772
not helpful when wanting billions of investment. i expect targeting pension relief on high rate tax payers, which doesn't hurt their core and targets only higher income earners. easy £10bn.
nevergoagain
Well-known member
They've already paid tax on it though?
LamieRobertson
Not awoke
So….just coming out of a pandemic ..business and consumer confidence battered let alone moral ….followed on by mortgage rates increasing ….domestic bills increasing and you think the public would have accepted without question income tax going up? Wow lol……let alone what that would have done to the fragile economy ..hmmmWhy not income tax? As @Greenbag50 acknowledges the debt was huge and necessary.
And those interest rates? High because Liz The Lettuce did indeed fiddle with tax. She cut it
Truss didn’t cut any taxes she didn’t get the chance….sure she destabilised the money markets …and part of the cost of our debt is down to her but then a certain amount has to be down to the Bof E misjudging inflation for transitory rather than sticky and not shoving up rates earlier …still one thing Truss and Reeves have in common is the call for growth…..the latter has communicated this to the markets far better…now we await to see how it will be achieved
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Yeah, ULEZ is not a revenue-raising scheme, the aim is to improve health and reduce carbon emissions.
There may be more pedestrian zones however
- Jul 10, 2003
- 27,240
Scrimping and saving from a position where you have absolutely nothing, having to leave full time education at the first opportunity to bring income into a struggling single parent family in social housing and then from there, scrimping and saving in order to buy a family home is very hard work indeed.
To get from that position to one where you have managed to amass assets of significantly over £1M and leaving your kids liable to pay any inheritance tax in a single generation takes continual hard work and a not insignificant amount of luck.
If my kids were in the position of inheriting all that through pure luck of birth, I really wouldn't begrudge some others also benefiting the way they have
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BrightonCottager
Well-known member
This. Latest government statistics are that 3.73% of estates paid IHT https://www.gov.uk/government/stati...mentary/inheritance-tax-statistics-commentary
As stated above, I'm selling my mum's house to pay for her care home costs. It has appreciated hugely in value because it was bought in 1969! Because she's 'downsized', the Residential Nil Rate Band continues. If there's money left when she does go then I may have to pay IHT and grin and bear it. What pisses me off isthe really rich can set up trust funds to avoid IHT (although this is getting harder to do apparently).
LamieRobertson
Not awoke
Good points…..where in your opinion should the threshold start…or has that already been statedScrimping and saving from a position where you have absolutely nothing, having to leave full time education at the first opportunity to bring income into a struggling single parent family in social housing and then scrimping and saving in order to buy a family home is very hard indeed.
To get from that position to one where you have managed to amass assets of significantly over £1M and leaving your kids liable to pay any inheritance tax in a single generation takes continual hard work and a not insignificant amount of luck.
If my kids were in the position of inheriting all that through pure luck of birth, I really wouldn't begrudge some others also benefiting from that the way they have
Ps can’t say I know much about IHT as it’ll never be personally relevant
Jimmy Grimble
Well-known member
Do you realise how much of a pisstake that is to the vast majority of people aged 20-40 who will never own a home despite working hard?
Just look at @Weststander’s posts on this thread.
You’re clueless.
- Jul 10, 2003
- 27,240
Good points…..where in your opinion should the threshold start…or has that already been stated
Ps can’t say I know much about IHT as it’ll never be personally relevant
The published figure is £325,000 but practically for a couple it's £1M. This is a good explanation
I'm no fan of Liz Truss, clearly - who is? - but is the "interest rates are high because of Liz Truss" really true? Her budget was a disaster, obviously, but if I compare UK interest rates with elsewhere, many countries experienced similar rate rises at the same time. Doesn't this indicate some sort of broader global factor(s) at play?And those interest rates? High because Liz The Lettuce did indeed fiddle with tax. She cut it
(Again I'll reiterate I'm not defending the abysmal Liz Truss, but is she to blame for interest rates rising globally at the same time?)