[Politics] Tory meltdown finally arrived [was: incoming]...

[nicko31]

Encouraging people to spend in their later years wouldn't be such a bad thing, it's better for the economy for money to be spent (and therefore taxed again) than sitting in a bank account or other assets such as a house that don't get bought/sold regularly.

If it were down to me, I'd set an upper limit for inheritance - let's say £50,000 per person for example - where everything above that gets taxed 100%. If that encourages people to split their inheritance across more recipients, that's better as it's more likely to get spent and re-taxed through VAT etc. The upper limit would need to be large enough to allow people to leave a generous gift for their children, without handing them a significantly unfair advantage over the majority who do not have much to gift to their kids.

I know a lot of people would find that uncomfortable as it would mean parents couldn't hand their property down to their children anymore. But the way property ownership is going, in 50 years or so only the rich will be able to hand property down. This spirals into an ever unfair cycle where the best chance of owning your own house is through inheritance. Personally I think that right should be earned, not gifted.

It's natural for parents to want their own kids to inherit everything they've worked for, and I understand why some may feel that this would take that right away from them. But I strongly believe that society should do everything it can to balance the opportunities for every child, you don't get to choose the circumstances you are born into after all.

£50k limit, yes I'd be in favour of that for the reasons you demonstrate

I'd also close a of couple loopholes like pension pots which are exempt from inheritance (unbelievable but true) and is agricultural land (that one is completely open to abuse by the rich)

 

[beorhthelm]

1. it would be meritocratic

2. no, it wouldn't

lets try how would it promote social mobility? it just raises some more funds that government can sprinkle across services. taxes change behaviours and incentives, why wouldnt this one?
saying its merticocratic gives the game away really, this is intended to take generational wealth. comes at the cost of anyone that have worked hard and want to pass something along, you done well but the state takes it all. social mobility then occurs by compressing the range, not raising any one up.

 

[dazzer6666]

£50k limit, yes I'd be in favour of that for the reasons you demonstrate

I'd also close a of couple loopholes like pension pots which are exempt from inheritance (unbelievable but true) and is agricultural land (that one is completely open to abuse by the rich)

Inherited pension pots are taxed as income when funds are withdrawn by the beneficiary instead……..and you’d end generational farming at a stroke ?

 

[Barnet Seagull]

Id be a fan of inheritance tax reform and long term having it at 100% but this would need to be coupled with universal basic income. Increased opportunity and provision for all.

 

[dazzer6666]

Raising IHT even a bit (let alone to 100%, depending on the tax free allowance) would quite likely result in a reduction in tax revenue IMO (Laffer curve effect perhaps ?), the wealthy would continue to have loopholes found for them and there would be a colossal movement of money offshore. IHT is a tiny proportion of the current uk tax take (c1% I think).

 

[BLOCK F]

Blimey, some extreme views being expressed on here.
Good thing those expressing them are not standing for election, they’d never get a sniff.

 

[Seagull27]

lets try how
saying its merticocratic gives the game away really, this is intended to take generational wealth. comes at the cost of anyone that have worked hard and want to pass something along, you done well but the state takes it all. social mobility then occurs by compressing the range, not raising any one up.

What's the problem with taking generational wealth? What about the people who have worked hard and want to pass something along, but don't have anything to pass down because they've had to sell their house to pay for retirement homes etc?

 

[schmunk]

Raising IHT even a bit (let alone to 100%, depending on the tax free allowance) would quite likely result in a reduction in tax revenue IMO (Laffer curve effect perhaps ?), the wealthy would continue to have loopholes found for them and there would be a colossal movement of money offshore. IHT is a tiny proportion of the current uk tax take (c1% I think).

Inheritance tax is forecast to raise £6.7bn this year.

In comparison, the recent increase to National Insurance rates (offset by the increase to the primary threshold) is forecast to raise an extra £12bn p.a. on top of the existing £157bn take last year.

 

[dazzer6666]

Inheritance tax is forecast to raise £6.7bn this year.

In comparison, the recent increase to National Insurance rates (offset by the increase to the primary threshold) is forecast to raise an extra £12bn p.a. on top of the existing £157bn take last year.

Exactly…….

 

[nicko31]

Shell profits out.

£7.3B for first 3 months, highest since 2008, shares soaring. We all pay, when will this lot get it?

 

[rippleman]

Our wonderful, politically astute, Foreign Secretary yesterday described doing business with Russia as "morally bankrupt".

I wonder how our wonderful, politically astute, Chancellor of the Exchequer feels about his wife being described as "morally bankrupt"? Because she is, isn't she.

 

[schmunk]

I wonder how our wonderful, politically astute, Chancellor of the Exchequer feels about his wife being described as "morally bankrupt"? Because she is, isn't she.

No.





(I say this as a specialist in international personal taxes, not a supporter of the Tory government (I'm not))

 

[rippleman]

No.





(I say this as a specialist in international personal taxes, not a supporter of the Tory government (I'm not))

She has an investment of over £400m in an Indian company that continues to trade in Russia.

https://economictimes.indiatimes.co...-rishi-sunak-grilled/articleshow/90442232.cms

It has nothing to do with taxes!

(I also am a specialist in international personal taxes and not a supporter of the Tory government)

 

[schmunk]

She has an investment of over £400m in an Indian company that continues to trade in Russia.

https://economictimes.indiatimes.co...-rishi-sunak-grilled/articleshow/90442232.cms

It has nothing to do with taxes!

OK, fair enough, but her <1% ownership isn't going to get her much of a say on the business management.

(I also am a specialist in international personal taxes and not a supporter of the Tory government)

 

[Medwayseagull]

OK, fair enough, but her <1% ownership isn't going to get her much of a say on the business management.

Presumably she could decide to sell her shares if she wished to and take a moral stand ( although probably not as she is married to a leading Tory).

 

[Medwayseagull]

Our wonderful, politically astute, Foreign Secretary yesterday described doing business with Russia as "morally bankrupt".

I wonder how our wonderful, politically astute, Chancellor of the Exchequer feels about his wife being described as "morally bankrupt"? Because she is, isn't she.

Laughable considering the amount of donations given by Russian donors to the Tory party.

 

[dazzer6666]

She has an investment of over £400m in an Indian company that continues to trade in Russia.

https://economictimes.indiatimes.co...-rishi-sunak-grilled/articleshow/90442232.cms

It has nothing to do with taxes!

(I also am a specialist in international personal taxes and not a supporter of the Tory government)

Most our pension funds have the same or similar investments

 

[zefarelly]

£50k limit, yes I'd be in favour of that for the reasons you demonstrate

I'd also close a of couple loopholes like pension pots which are exempt from inheritance (unbelievable but true) and is agricultural land (that one is completely open to abuse by the rich)

Farmers with expansive collections of expensive racing cars . . . . I've met a few . . . . . all IT free.

 

[nicko31]

Farmers with expansive collections of expensive racing cars . . . . I've met a few . . . . . all IT free.

The richest person in Britain, a certain James Dyson owns more farmland than anyone else

Isn't it great he has pass it on tax free

 

[A1X]

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