[Politics] Inheritance Tax

[fly high]

Threshold is £325k. If you leave family home to children then it can go up to £500k (£1m for a couple).

If one partner died 30 years ago and left everything to the spouse and now the spouse has died, I believe the effective threshold, ignoring the family home is £650k (the threshold for the partner that died first is the one applicable now, not the one at the time of death). If you include the family home going to children then it is £1m. Hence the reason so many are not actually affected by IHT yet still get agitated by it.

But how do we know if they really want to grab more IHT they won't reduce the tax free part so dragging many more into paying it.

 

[BrightonCottager]

I do beg your pardon. I misinterpreted the HMRC rules about the Residential Nil Rate Band being passed onto beneficiaries. It only applies to direct descendants. Quote from the website below:

'If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren your threshold can increase to £500,000.'

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

 

[drew]

But how do we know if they really want to grab more IHT they won't reduce the tax free part so dragging many more into paying it.

We don't. However, I was just correcting someone on what the system currently is, not speculating.

 

[Terry Butcher Tribute Act]

Once again Labour not getting the hang of briefing in a policy, I suppose that stems from spending 4 years in opposition doing nothing beyond slating Tories.

It shouldn't be difficult to get across that this isn't going to impact your average working class family.

 

[Bodian]

Once again Labour not getting the hang of briefing in a policy, I suppose that stems from spending 4 years in opposition doing nothing beyond slating Tories.

It shouldn't be difficult to get across that this isn't going to impact your average working class family.

Some things can be said over and over - but if folk don't want to listen or take it in, it's an uphill struggle to get it across.

And anyway - no-one knows yet what the changes will be, so Labour can't get anything across really.

 

[Herr Tubthumper]

Once again Labour not getting the hang of briefing in a policy, I suppose that stems from spending 4 years in opposition doing nothing beyond slating Tories.

It shouldn't be difficult to get across that this isn't going to impact your average working class family.

They have repeatedly said this isn’t going to affect the average working person. Whether you choose to listen is a different matter.

 

[nicko31]

They have repeatedly said this isn’t going to affect the average working person. Whether you choose to listen is a different matter.

There will be plenty of bed wetting even though 9 out of 10 people won’t be effected

 

[Terry Butcher Tribute Act]

They have repeatedly said this isn’t going to affect the average working person. Whether you choose to listen is a different matter.

They don't control the red tops so need to find others ways to get their message out their that isn't buried in your average Guardian opinion column. Out of touch, imho.

 

[Beach Hut]

They have repeatedly said this isn’t going to affect the average working person. Whether you choose to listen is a different matter.

Indeed they have, just as they said they were pro-pensioners prior to shafting them big-time over winter fuel allowance

 

[Bodian]

They don't control the red tops so need to find others ways to get their message out their that isn't buried in your average Guardian opinion column. Out of touch, imho.

How do you suggest though? As you say - they can't control the news in 90% of the papers, the BBC are fairly impartial - so that doesn't leave them much. Social Media - but that's got a mixed reach. What's your suggestion?

 

[Terry Butcher Tribute Act]

How do you suggest though? As you say - they can't control the news in 90% of the papers, the BBC are fairly impartial - so that doesn't leave them much. Social Media - but that's got a mixed reach. What's your suggestion?

BBC might be impartial but doesn't mean you can't use it to explain details of a policy. Or for that matted, GMB, Sky News, Youtube, Twitter, Tik Tok, Facebook.

At the moment they are just gifting Tories open goals.

 

[dazzer6666]

There will be plenty of bed wetting even though 9 out of 10 people won’t be effected

….and most of the rest will be planning how to best avoid it

 

[Is it PotG?]

This “lazy tax grab” will drag average families into paying the levy while the ultra-rich manipulate loopholes to avoid it.

The increased income to the Govt will be negligible and hopefully alienate many of the tactical voters who voted yellow last time.

 

[Machiavelli]

They don't control the red tops so need to find others ways to get their message out their that isn't buried in your average Guardian opinion column. Out of touch, imho.

I agree with you. There is an in-built structural bias towards the Tories and against all other parties in our media. It's a shame that so many others struggle to understand this.

 

[severnside gull]

Once again Labour not getting the hang of briefing in a policy, I suppose that stems from spending 4 years in opposition doing nothing beyond slating Tories.

It shouldn't be difficult to get across that this isn't going to impact your average working class family.

What utter tosh. Labour can “brief” all it wants (although notably and admirably it shows little sign of doing so) it’s the MSM that spread disinformation regardless

 

[drew]

This “lazy tax grab” will drag average families into paying the levy while the ultra-rich manipulate loopholes to avoid it.

The increased income to the Govt will be negligible and hopefully alienate many of the tactical voters who voted yellow last time.

4% of estates are currently subject to IHT. Exactly how much of a shift in the thresholds are you anticipating for it to actually affect the 'average' household?

 

[Machiavelli]

Here's some helpful and accurate information for those interested in what IHT is collected on currently, how much it raises, how much it is projected to raise on current trajectories, and the potential changes to it:

What is inheritance tax and why might Reeves target it in her budget?

Some are predicting sweeping changes to the levy payable on the part of estates over £325,000

www.theguardian.com

 

[nicko31]

Here's some helpful and accurate information for those interested in what IHT is collected on currently, how much it raises, how much it is projected to raise on current trajectories, and the potential changes to it:

What is inheritance tax and why might Reeves target it in her budget?

Some are predicting sweeping changes to the levy payable on the part of estates over £325,000

www.theguardian.com

Def. do something about no IHT on pension pots. This hasn't even been taxed in the first place, farcical....

 

[Shropshire Seagull]

Def. do something about no IHT on pension pots. This hasn't even been taxed in the first place, farcical....

But pension pots have always been encouraged by governments to help relieve dependency on the state pension.

How else can pension incentives be made if the tax carrot is removed?

Would be short-termism of the highest order.

Keynesium economic theory discourages savings as this takes money out of the economy and pension pots are a form of long term savings.

 

[fly high]

Def. do something about no IHT on pension pots. This hasn't even been taxed in the first place, farcical....

I was amazed when Mum was paid my brother's pension each month, tax free. Pot is peanuts as was his estate & will take nearly 2 years before it pays off his funeral costs & we didn't spend a fortune, no cars, simple cremation etc. Guess the pot wouldn't come into the category to be taxed anyway but thought the monthly payments would be taxed.