[Politics] Inheritance Tax

nicko31 · Nov 17, 2023

That will help the level up the country

Autumn Statement: Jeremy Hunt considering cuts to inheritance tax

The BBC has been told the chancellor is considering cutting some taxes in his Autumn Statement.

www.bbc.co.uk

Eeyore · Nov 17, 2023

Odd decision as I think I read that only 6% pay it and if you do pay it then you've inherited a pretty large sum. The first £300 odd grand is tax free and even then allowances can be transferred to increase it.

SurreySeagulls · Nov 17, 2023

Another Tory policy to enrich the rich further, Hunt is just like the others, a snake in the grass allowing his rich fellows to dine at the same trough

Westdene Seagull · Nov 17, 2023

Scrap it entirely - purely an envy tax. Won't make me vote Tory the next election though.

Horses Arse · Nov 17, 2023

They should increase it, remove the passdown of wealth.

Only after I've inherited though obviously

nicko31 · Nov 17, 2023

It’s unearned income for the recipient, tax the whole lot at the marginal rate.

atomised · Nov 17, 2023

Eeyore said:
Odd decision as I think I read that only 6% pay it and if you do pay it then you've inherited a pretty large sum. The first £300 odd grand is tax free and even then allowances can be transferred to increase it.

the threshold is 325k but should an estate be worth 326k you're liable to inheritance tax on the lot so the solicitor dealing with an estate I stand to inherit says

BNthree · Nov 17, 2023

Given property prices in some areas mean huge amounts can be inherited now I say increase the threshold but also increase the rate.

fataddick · Nov 17, 2023

atomised said:
the threshold is 325k but should an estate be worth 326k you're liable to inheritance tax on the lot so the solicitor dealing with an estate I stand to inherit says

Get a proper solicitor then. Like other taxes (income tax etc) it's only charged on the overage beyond the allowance.

abc · Nov 17, 2023

At the end of the day governments have to collect tax. Scrap this tax and they will have to raise another one somewhere. Inheritance tax is a tax on the dead, so much as i don’t like the principle it surely does the least damage to people or the economy

atomised · Nov 17, 2023

fataddick said:
Get a proper solicitor then. Like other taxes (income tax etc) it's only charged on the overage beyond the allowance.

that's as I thought thankfully as it had previously been passed to my mum the threshold doubles anyway as far as I can tell so won't be an issue

Weststander · Nov 17, 2023

The rich very often don't pay IHT.

It's those in the levels directly above the threshold (much of Southern England) who don't have the time, contacts or wherewithal to tax plan.

Any couples/families here with a home, savings and investments worth more than £650k? I think you're in line to pay IHT.

gazingdown · Nov 17, 2023

With high house inflation over past 20 years, this will affect more people than has done historically.

CheeseRolls · Nov 17, 2023

Some of the exemptions are farcical. Take farm buildings. The exemption exists to stop parts of farms being sold off into smaller uneconomic units. In the 21st century farm tenants pay through the nose to the landowners and the rest of us mustn't question it as we need the produce to feed us. This just operates to the advantage of a very narrow section of society.

schmunk · Nov 17, 2023

atomised said:
the threshold is 325k but should an estate be worth 326k you're liable to inheritance tax on the lot so the solicitor dealing with an estate I stand to inherit says

How Inheritance Tax works: thresholds, rules and allowances

Inheritance Tax (IHT) is paid when a person's estate is worth more than £325,000 when they die - exemptions, passing on property. Sometimes known as death duties.

www.gov.uk

For a married couple, who are leaving their main house to their direct descendants within their estate, the threshold can be up to £1,000,000.

Nobby Cybergoat · Nov 17, 2023

Westdene Seagull said:
Scrap it entirely - purely an envy tax. Won't make me vote Tory the next election though.

How do we replace the lost billions coming into the public purse?

highflyer · Nov 17, 2023

fataddick said:
Get a proper solicitor then. Like other taxes (income tax etc) it's only charged on the overage beyond the allowance.

Was just going to post the same. Also note:

'most married couples can leave up to £1 million to their children tax-free. Inheritance tax is only paid at 40% on assets and wealth above £1 million – and even then loopholes can mean that for some families no tax is paid on assets worth over £1 million.

The IFS has estimated that the wealthiest 1% would get half the benefit of scrapping inheritance tax, with an average tax cut of £1 million'

The main problem with the debate on inheritance tax is disinformation.

The gap between the number of people that think they would pay inheritance tax and those that acually would is large. TUC polling reveals that 'a sizable 32% of the public who expect to benefit from inheritance think they will have to pay inheritance tax – significantly higher than the 4% of estates that do'.

The same polling indicates gerenral public support for keeping, or raixing the tax, though you'd never know that from reading the tabloids (and telegraph).

here the link to the TUC polling:

Clear majority want to keep inheritance tax at current level or raise it – new TUC polling finds

A clear majority (60%) of the public are against cuts to the £1 million inheritance tax threshold – while just 2 in 10 said they wanted the tax lowered, according to new polling published by the TUC today (Thursday).

www.tuc.org.uk

I cannot imagine why the very rich owners of our main media outlets are so keen to spread disinformation and stir up oppoistion to inheritance tax...

Eeyore · Nov 17, 2023

atomised said:
the threshold is 325k but should an estate be worth 326k you're liable to inheritance tax on the lot so the solicitor dealing with an estate I stand to inherit says

That's tosh. I don't know where they got that from. Also there are unused allowances. My parents estate had a £650k inheritance tax allowance on it. BBC says only 4% of folk end up paying it. And, let's face it, if you end up paying it that's some sizeable wad of cash you're sitting on there.

As regards 'envy tax' in other comments. I don't agree. It's luck of the draw tax. Had I qualified, I would have happily paid my share.

Nobby Cybergoat · Nov 17, 2023

I don't get this from a political point of view.

So 6% will pay it. Those 6% were likely to vote tory anyway.

The people that the tories need to convince if they are to have any hope at the next election are the red wall lot, Workington man blah blah.

I get there is a wider consituency of people who will never pay it but incorrectly fear they will pay it. But again, there's not too many floating voters here.

So is this more about holding the party together? Sunak is saying, "OK, I sacked Suella and appointed Cameron, please 1922 committee, please don't boot me out before the election, look here's some red meat for you"

highflyer · Nov 17, 2023

Nobby Cybergoat said:
I don't get this from a political point of view.

So 6% will pay it. Those 6% were likely to vote tory anyway.

The people that the tories need to convince if they are to have any hope at the next election are the red wall lot, Workington man blah blah.

I get there is a wider consituency of people who will never pay it but incorrectly fear they will pay it. But again, there's not too many floating voters here.

So is this more about holding the party together? Sunak is saying, "OK, I sacked Suella and appointed Cameron, please 1922 committee, please don't boot me out before the election, look here's some red meat for you"

Good question.
I think yes, red meat for the right wing. But also, and probably as important, keep the right wing media (owners) onside.

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[Politics] Inheritance Tax

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