[Finance] Rachel Reeves to reveal £20bn shortfall left by Conservative Government

[nicko31]

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

Like VAT and charitable status on private schools its a form of state sponsorship of the British class system.

It ensures inequality is entrenched through the generations, wealthy parents get to pass their wealth down tax free to the kids. They then enter the housing market high on the parents supply, outpricing poorer kids.

Tax the dead, its the living that need a break.

 

[Is it PotG?]

Tax the dead, it's the living that need a break.

Maybe they could aspire to work hard to emulate those who started with nothing yet earned and saved to buy a home.

 

[Tubby Mondays]

And Labour before the conservatives?

Remember the note?

It’s all quite tiresome……

Another ignore thread……

The note from Reginald Maudling to James Callaghan in 1964 you mean?

‘Good luck old cock. Sorry to leave it in such a mess’.

 

[Weststander]

Before this becomes a "fact", houses are worth 2x what they were in 1996 according to the ONS.

Nationwide UK House Prices Index Adjusted for Inflation ['Real' Prices]

Nationwide Quarterly House Prices UK index data from 1973-2021 adjusted for inflation, also known as 'real' UK house prices

www.housepricecrash.co.uk

Have you got a similar graph for SE England?

 

[Couldn't Be Hyypia]

Have you got a similar graph for SE England?

IHT is a national tax, affects us all (well those 4% who have to lay it). Not sure that's relevant.

My two pennies worth (or 12p worth for @Weststander ) it feels like a fair tax, especially when you pay nothing on the first mill of the estate.

 

[A1X]

The problem with the Conservatives is they eventually run out of other people’s money to hand over to their mates

 

[HH Brighton]

Don't tell me, we might see taxes going up after all

Lets hope so, we all need to pay

 

[Weststander]

Jan 96 to Dec 23.

 

[Is it PotG?]

Lets hope so, we all need to pay

I pay plenty, thanks.

 

[BrightonCottager]

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

Under current rules, if you and your spouse / civil partner leave your assets to each other in your wills when the last surviving person dies , their Nil Rate inheritance tax band will be £1m including the Residential Nil Rate Band.

So your children will pay IHT (currently at 40%) on assets worth £1m or more. While alive, you can make gifts to children and others up to £3k / year without affecting IHT liability and gifts more than that are subject to taper tax relief depending when they were made.

* I'm not a tax adviser, I've just researched this as my mum's house is being sold to pay her care home fees.

 

[Silverhatch]

I’m not wealthy, I’m just hard working and aspirational.
I wanted a better life than what was on offer at the time: Council House. I didn’t go to university, I got 4 o levels.
It was in Thatchers Britain in 80’s, growing up in Scotland where they hated her, even more than down here.
Aspiration and opportunity. That’s what I grasped from that time and that’s what I instill in my kids today.
Not big state and take from those who want do well and achieve.
If you take from achievers and wealth creators, they will leave and take their wealth and creation somewhere it is appreciated and embraced as a force for good, not as a sponge to be continually squeezed.

Your story is similar to mine. But I did go to University in the early days of Thatcher’s Britain. As a 5 O Level, state educated, non sixth form kid my background was very different to most.

What I grasped is always question everything, and that aspiration is very different to entitlement.

People defend entitlement with their last breath and the greatest entitlement is inheritance.

 

[Couldn't Be Hyypia]

Jan 96 to Dec 23.

View attachment 186085

But that doesn't take in to account the relative value of the money in 1996. Those numbers don't look too far out from the national numbers (though higher I agree)

 

[Mellor 3 Ward 4]

Oh well, I guess that the ridiculously generous furlough scheme (the most generous in Europe) and the fraud that went with it - have got to be paid for somehow.

 

[Weststander]

But that doesn't take in to account the relative value of the money in 1996. Those numbers don't look too far out from the national numbers (though higher I agree)

RPI is 1.95x higher than 1996. Sauce: BOE.

In real terms, today’s first time buyers would be paying £76k for a flat in Brighton and Hove, £123k for a terraced home. Easy to see how most 20 to 40 year olds are up **** creek.

 

[WATFORD zero]

I'm always stunned by how angry the 96% of people who will never pay Inheritance tax get about it

 

[Herr Tubthumper]

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

IHT already exists. I do not have an issue with it and I do not have an issue if anyone decides to increase this. I know all the arguments for both sides, but feel it's an appropriate tax.

 

[Peteinblack]

Maybe they could aspire to work hard to emulate those who started with nothing yet earned and saved to buy a home.

World of work has changed. Millions of people do work hard - they have to in order to keep their jobs and hit 'performance targets' - but their wages and salaries don't increase to reflect their hard(er) work.

The only people who benefit from you or I working harder are our bosses and/or shareholders.

The idea that hard work = wealth and success, and that being poor = laziness, is just lazy (offensive) Right-wing propaganda intended to denigrate the poor, and put the rich on a pedestal; to justify obscene inequality.

Do you know that 48% of people who claim welfare benefits are in paid employment, but their wages are so low, that they can claim financial support to survive. Do their low wages mean that they are lazy - or that their employers are not paying them properly?

 

[abc]

Like VAT and charitable status on private schools its a form of state sponsorship of the British class system.

It ensures inequality is entrenched through the generations, wealthy parents get to pass their wealth down tax free to the kids. They then enter the housing market high on the parents supply, outpricing poorer kids.

Tax the dead, its the living that need a break.

I hate it when people still refer to things like ‘the class system’, not least because this tends to perpetuate it when 99% of people have long moved on.
BUT I think your last statement is spot on. IHT never hurts the people who worked hard to earn their ‘estate’, only those who might inherit it but have done nothing to earn it. Seems fair to me.

 

[Chicken Run]

Oh well, I guess that the ridiculously generous furlough scheme (the most generous in Europe) and the fraud that went with it - have got to be paid for somehow.

I hope the government are robust and proactive in enforcing the repayment of the Bounce Back Loans

 

[Peteinblack]

I'm always stunned by how angry the 96% of people who will never pay Inheritance tax get about it

And that the people who are so angry about IHT or VAT on private school fees never seem to be angry about how many people have become reliant on Food Banks due to inadequate incomes.

The motto that so many people seem to live by is "Love and protect the rich, hate and punish the poor."