Why should we have to pay inheritance tax?

[Btone]

my problem with inheritance tax is who pays it.

people who have LOTS off assets know they lots of assets and will most likely be taking action to make sure they pay little or no tax.

the people who will get hit hardest is the people who bought there house 20/30 years ago for 40K. they lived in it as a home not a investment. but in those 30/40 years the house is now worth £300,000/£500,000 and they don't know it , when they die they (or rather there children) will get hammered by a government who are one of the most wistful we have every seen

 

[Morba]

People see it as Death tax rather than inheritance tax, that is the "problem". At the end of the day, the benifitaries are going to get a windfall and it is them who are complaining. The dead are dead, the have no need for money.

Anyone who is worried, go talk to a solicitor and ask for ways to disrtibute the estate in advance so limit the effect of IHT.

you inherit when someone dies, therefore its a death tax.
the money / estate has been taxed plenty of times in its owners hands, why should it then be subject to tax again, regardless of who it goes to?

 

[Morba]

Because it simply isn’t fair. Why should one person be given a better chance in life because of what preceded them. Why should one man be punished because his father was a dustman not an accountant? Why should a child go hungry because his parents worked as teachers.

I do understand what you are saying. I am far far more right wing than the socialist left. However if you allow people to horde wealth and keep it for themselves you would be neglecting a large proportion of society. If somebody has amassed a considerable wealth despite the heavy taxation then clearly extra steps need to be taken to redistribute it.

why?
someone has done something seriously right in life to amass a considerable wealth considering the heavy tax, yet that person should be looked on as a bad person? should be punished because of it?

people who earn a lot of money are already punished by the crazy taxation in this country, why when they have worked hard and have an opportunity to make their families lives better, should we take that away from them?

im working as hard as i can, trying to earn as much as i can so that i can provide or my children and my grandchildren etc, not so that my hard earned money can be shared out to the scum in this country that dont deserve a penny of my nor your money.

 

[Burned_Alive]

I find the whole situation ridiculous, taxing money that has already been taxed when it was earnt just because you die is a farce plain and simple. They earned it (and paid tax on it) and if they choose to leave it to their family to help make their lives better they should be able to, tax free.

Its fairly clear that those in this thread that agree with inheritance tax have never been lucky enough to receive a large sum of money through an inheritance and it all smacks of jealousy.

 

[Van Hellseek]

it all smacks of jealousy.

Jealous that their relatives aren't dead?



Though I agree with the rest of your post.

 

[Trojan]

My parents have done the same thing, every asset is joint. They have propertys floating around worth around the £1m mark, and there no way in hell they are going to let gordon brown steal £400,000 of it.

The tax wouldn't come to a total of £400k if the estate was worth £1m, it would actually come to £286k. This is because the tax isn't payable for the total amount of inheritance, only for the excess above the £285k threshold.

 

[Zefan]

If you receive any money in this country it's taxed, get used to it. I would much prefer to see this gone.

It sucks yes, but it's a price we pay for living in a country that has the facilities it does.

 

[ironman]

Because it simply isn’t fair. Why should one person be given a better chance in life because of what preceded them. Why should one man be punished because his father was a dustman not an accountant? Why should a child go hungry because his parents worked as teachers.

I do understand what you are saying. I am far far more right wing than the socialist left. However if you allow people to horde wealth and keep it for themselves you would be neglecting a large proportion of society. If somebody has amassed a considerable wealth despite the heavy taxation then clearly extra steps need to be taken to redistribute it.

What's not fair is punishing wealthy people who earnt that money. My father works for his children, nothing else, what is right about taking money away from his aims?

What people need to do is take responsibility and get off their arses and work, not get given handouts. My family went through it without handouts, why can't others.

 

[Locrian]

What's not fair is punishing wealthy people who earnt that money. My father works for his children, nothing else, what is right about taking money away from his aims?

What people need to do is take responsibility and get off their arses and work, not get given handouts. My family went through it without handouts, why can't others.

Hey dont get my wrong, i agree with you and im in exactly the same position! My dad came from an extremely poor welsh mining family and he has worked his way up to be very successful in his carreerr. Everything he does he does for the family to give me and my sister the best possible start in life which he didnt have.

I believe the cap should be at least a few million if anything at all, such that it only hits the very top end of the spectrum

 

[ironman]

Hey dont get my wrong, i agree with you and im in exactly the same position! My dad came from an extremely poor welsh mining family and he has worked his way up to be very successful in his carreerr. Everything he does he does for the family to give me and my sister the best possible start in life which he didnt have.

I believe the cap should be at least a few million if anything at all, such that it only hits the very top end of the spectrum

I just disagree with it full stop. Anyway they will have a good job trying to get anything from us, especially since when my time comes to retire i'll hand it down to my children.

 

[badgermonkey]

Get yourself on their mortgage before they pass and you'll legally own the house so it won't be an inheritance

 

[hsp70]

I'm surprised so many people see the TAX from the point of view of the children and not the parents.

This is money that has already been taxed before, and if you are in a high income band, then significantly already. What right does the the govt have to take 40% of that through IHT? I would be very angry knowing that a huge chunk of my assests will be creamed off by the govt upon my death.

For those people saying it's "unfair" these children have these big windfalls without being taxed. I find it farcical. As a parent i have a right to give my children whatever i want. Tax has been paid already, my contribution to the country is accounted for. So each christmas and birthday if i chose to buy my child a present, i need to buy every kid in the land one too on account of fairness? The money has already been through the ringer once, a proportion of my earnings have gone on to support our society as a whole already. I don't agree that my wealth has to go through it again.

 

[Lord_Kokain]

first of all 285,000 doesnt look like very up-to-date figure to me.

Im very much against that tax not only for the previously stated reasons by some of the people here but also for something esle. Basically im my case,I live with my parents, yet Im old enough to "chip in" from time to time towards the mortgage of the house.My parents btw are about 30 years older than me so it may even occur that I would one day contribute most of the money at some point. Does that mean that I should still be axed "for good" when my parents pass away?

And btw, I dont even recall hearing of any former communist state to have had an inheritance tax of a magnitude close to that one(i.e.40%) so, if the reasons behind it are welfare, equality etc, that goes beyong the far left wing economic policies.

 

[Sequoia]

.... If somebody has amassed a considerable wealth despite the heavy taxation then clearly extra steps need to be taken to redistribute it.

If you take punitive steps to clobber those that have serious wealth, you are clobbering precisely the people that can (and in many cases do) take perfectly legal steps to ensure that the government don't get their greedy, grasping little mitts on much, if indeed any, of it.

For instance, you are seeking to clobber precisely the people that can afford to pay tax accountants to exploit loopholes, or to ensure holdings are owned by offshore companies through nominee shareholders .... or who simply relocate and/or redomicile offshore.

 

[Richdog]

If you take punitive steps to clobber those that have serious wealth, you are clobbering precisely the people that can (and in many cases do) take perfectly legal steps to ensure that the government don't get their greedy, grasping little mitts on much, if indeed any, of it.

For instance, you are seeking to clobber precisely the people that can afford to pay tax accountants to exploit loopholes, or to ensure holdings are owned by offshore companies through nominee shareholders .... or who simply relocate and/or redomicile offshore.

Seq what's your full, unbridled opinion on IHT? I know that theoretically you (or your dear sprogs should I say) could get mutilated by it with the amount you're likely to be worth when you die.

 

[alexakasloth]

That's not the same. I'm saying if your parents lived on their own, but their house was now in your name. Then they no longer own the house they're living in, so must pay rent.

Must pay rent? Is there a law which says they have to

 

[Spacky]

Next we will get charged for keeping the deceased in the ground on a monthly basis

 

[Jono]

IHT is a disgrace. I completely agree with anyone who says the same, and for the same reasons.

This country needs to stop celebrating ignorance and rewarding mediocrity. People should have some incentive to work hard. So what if someone's parent was a binman. What's to stop them wanting to achive more. Equal opportunities are practically forced upon everyone these days.

Tax on income, tax on purchases (made with already taxed money), tax on savings, tax on living your life. Tax when you die.

I'd rather they scrapped the benefits for scroungers and forced them to work.

I expect to be hit pretty hard by inheritance tax - my dad is less happy about it than I am. I don't want to be given everything on a plate - I'd rather work for it and appreciate it more, but this IHT is robbery. Nothing else.

 

[csmager]

Must pay rent? Is there a law which says they have to

You don't have to, no. If you don't pay a market rent for the house, it becomes what's known as a 'gift with reservation'. Which basically means that giving it away made bugger all difference in terms of IHT.

An article here: http://news.bbc.co.uk/1/hi/business/3669347.stm

From a government site:

you make a gift with strings attached (technically known as a ‘gift with reservation of benefit’), it will still count as part of your estate, no matter how long you live after making it. For example, if you give your house to your children and carry on living there without paying them a full commercial rent, the value of your house will still be liable for Inheritance Tax.

 

[Dtab]

And in some cases your job too especially people from farming backgrounds.

afaik there is an exemption for agricultural holdings

my friend's parents transferred the estate to him and they rent it for £1 a month, they've got signed tenancy agreements, rent books, the works.

the guy is an accountant so he's done it quite cleverly!

Hope it's been done more cleverly than what you have described
If you make a gift,technically you are not allowed to continue to benefit yourself from that gift.ie if you give away your house and continue to live there rent free,you are still benefitting from your gift (£1 rent is asking for trouble,should be nearer market value),although i'm sure he has covered himself better than that.

Inheritance Tax has a place in the tax system,but as it is atm it is missing the people it should be catching,and catching people it should be missing.It has not been updated properly for too long,and is now unfair.
The large estates that should fall into it are very easily able to move assets around to avoid the tax purely becouse they have many assets.Where the sole asset is the house you live in there is very little room for manouvre,you have to take it on the chin.