How the cost of living has changed from late 70's

randomshenans said:
Inheritance on estates over 325k is taxed at 40%
Capital gains is paid if an estate is sold and you gain from it at 28%
Click to expand...

From what I gathered is if let's say parents died and had an estate worth 1mln they'd pay no CGT on the estate gains (where as they would if they sold up) and it would be 325 tax free with 40pc off the remaining 675 (leaving 405).

But there would be no tax to pay on the 325+405 on the individual recipient.


My step dad seemed to think that 325+405 would be taxed again. And that this would be paid by the individual.
 
200sols said:
Its not taxed as earnings but if you inherit a pension e.g a SIPP it will be taxed at your rate when you access it if they die after 75, if they die before 75 its tax free. Bit of a loophole that needs closing really.
Click to expand...

Didn't even think about pensions.

But yeah this was more of a "I'm sure you're wrong dad".
 
Mrwong said:
You are living in the UK, so you could be double taxed.or end up paying the highest tax of each country. Let's say country A has 30% tax. And uk has 40% tax you will still need to pay the UK 10% tax.
Click to expand...

I believe they've put stuff in place to prevent that but to be honest I haven't really looked into it. I believe you can claim tax relief or even the tax back but to be honest the legal eagles/accountants have sorted it all out I believe I am without liability. Let's just imagine it does all go to ****, then I'd just sell the assets and carry on as I am now.
 
413x said:
From what I gathered is if let's say parents died and had an estate worth 1mln they'd pay no CGT on the estate gains (where as they would if they sold up) and it would be 325 tax free with 40pc off the remaining 675 (leaving 405).

But there would be no tax to pay on the 325+405 on the individual recipient.


My step dad seemed to think that 325+405 would be taxed again. And that this would be paid by the individual.
Click to expand...

Don't forget you get 325k per parent, so 650k on the whole estate after they both pass. Then the Main Residence relief of 175k each, so the first 1M can be IHT free
 
randomshenans said:
Inheritance on estates over 325k is taxed at 40%
Click to expand...
If a home is passed to a family member (in my case I'm hoping to buy 3/4 of Mum's bungalow from the rest of the family) there's an additional £175k allowance. As it happens this is irrelevant to us because the estate's only about £300k total. Didn't know about it until the solicitor I got advice from told me. Life gets very complicated very quickly at a time when you're really not up to it!

www.gov.uk

Check if an estate qualifies for the Inheritance Tax residence nil rate band

Check if a home is eligible for extra tax-free residence allowance if it is left to children, grandchildren or other direct descendants.
www.gov.uk www.gov.uk
 
Freakbro said:
Don't forget you get 325k per parent, so 650k on the whole estate after they both pass. Then the Main Residence relief of 175k each, so the first 1M can be IHT free
Click to expand...

Didn't realise that.
Just read about it. So if one parent dies (married) the 325 passes to the other. So you get 650?

Thats crazy really.

From other reading does seem like there are a load of different ways to legally dodge IHT. Sometimes completely.

Entire thing looks incredibly complicated. Must be really hard dealing with this stuff when also grieving
 
Last edited:
413x said:
From other reading does seem like there are a load of different ways to legally dodge IHT. Sometimes completely.
Click to expand...
The way the solicitor explained it to me is that the system is trying not to punish the average family whose only asset is one family home. It's trying (in a very imperfect way, but such are all things human!) to genuinely tax wealth, not normality.

Of course the truly rich can afford to find every loophole and wriggle. But that's always going to be the case, and I'd probably do exactly the same. I worry more about offshoring and lifetime tax dodging than I do about inheritance.
 
413x said:
Yeah same here.
My parents is 3/4 acre. And with inherited field at back (from grandparents) it puts it at 1.5 acres. It's not immaculate. And has a protected (tpo) ash/oak mixed wood at the front covering 1/3 acre.

But the upkeep is just a life long burden. If you have a 9/5 job you need another 9/5 job for at least 2 days just to keep on top of the cleaning/garden.

So you can kiss goodbye to your weekends unless you love that working in the garden thing.

Its not for me, or any of my siblings. None of us would want it, even if we could afford it. One of those things that looks great.. But don't underestimate the time commitment!
Click to expand...

That's why people pay for gardeners and cleaners. Design it to be low maintenance etc
 
I thought you might like to see a current picture of the house I mentioned earlier, that was £20,000 in the seventies.



They couldn't sell it. It sat there for a very long time for sale.
 
Last edited:
SpellowHouse said:
I thought you might like to see a current picture of the house I mentioned earlier, that was £20,000 in the seventies.



They couldn't sell it. It sat there for a very long time for sale.
Click to expand...
Imagine the heating bill!
What an I talking about. The furious work of the slaves bringing the owner their caviar is probably enough to keep it pleasant.
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom