Inheritance tax question.
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Hello,
Recently George Osborne announced at the Conservative party conference in Birmingham that as of now, inheritance tax is no more. In July my father passed away suddenly and 55% of his wealth he left behind for close family was stolen by the British government.
Because my father passed away 2 months before the abolition of the death tax. Would it be possible in anyway to claim back some of the vast sums that was stolen by the British government?
I'm sure if this question is in the right forum section.
Recently George Osborne announced at the Conservative party conference in Birmingham that as of now, inheritance tax is no more. In July my father passed away suddenly and 55% of his wealth he left behind for close family was stolen by the British government.
Because my father passed away 2 months before the abolition of the death tax. Would it be possible in anyway to claim back some of the vast sums that was stolen by the British government?
I'm sure if this question is in the right forum section.
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Comments
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Recently George Osborne announced at the Conservative party conference in Birmingham that as of now, inheritance tax is no more.
No, he said he intended to abolish the "death tax" on crystallised pension funds passed to non-spouses.In July my father passed away suddenly and 55% of his wealth he left behind for close family was stolen by the British government.
Had the tax been retrospective, it might be fair to say "stolen". But it wasn't so it isn't.Because my father passed away 2 months before the abolition of the death tax. Would it be possible in anyway to claim back some of the vast sums ...
And then what about the poor souls whose fathers died a month before yours? And then what about .....Free the dunston one next time too.0 -
Hello, thanks for your reply. I think stolen is the correct word used here. It was tax on his personal pension fund that was left for family. The sums stolen were a vast life changing amount that could have been used for a greater cause like paying off my mortgage and reserving payments for bills for years to come.
I would argue that the tax was retrospective considering it was scrapped for the sake of it, no doubt a few years later it will be thrown back into policy just for a buzz by communists, then scrapped again by posh guys in blue ties. It's a lottery whether or not you receive your full inheritance depending on the current government.
Is there any case here at all considering the closeness of the dates and the vast sums taxed?
I could be on a cruise right now.0 -
Pensions were intended to support one in one's old age, not as a way of avoiding inheritance tax. Did your father put money into his pension in the full knowledge of the tax system?
If he hadnt put the money into the pension he would have paid 20% or 40% income tax on the money, so you wouldnt have got all of it any way. Also it would have increased the value of his estate and so would be potentially liable for inheritance tax. Actually if he had been both a 40% tax payer and subject to inheritance tax you would have been worse off.0 -
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The legislation isn't yet in place anyway is it so it cannot count as being abolished?Because my father passed away 2 months before the abolition of the death tax.0 -
It was tax on his personal pension fund that was left for family. The sums stolen were a vast life changing amount that could have been used for a greater cause like paying off my mortgage and reserving payments for bills for years to come.
If he wanted to leave it for his family then he would have chosen another saving medium. He chose to invest in a pension, knowing the tax regime, including advantages, it would be subject to.
It was his pension, not your mortgage lifeboat.0 -
It may have been a lot of money taxed, but it certainly wasn't "stolen". As others have already said, pensions are an investment vehicle for retirement only, and not intended for IHT planning. The money in a pension has never been taxed, so the death tax is simply there to claw back the tax that should have been due in the first place (plus a bit more to reduce the inheritance value).Hello, thanks for your reply. I think stolen is the correct word used here. It was tax on his personal pension fund that was left for family. The sums stolen were a vast life changing amount that could have been used for a greater cause like paying off my mortgage and reserving payments for bills for years to come.Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.
Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.0 -
Hi all, thanks for your replies.
"The Chancellor today (Monday 29 September) announced that from April 2015 individuals will have the freedom to pass on their unused defined contribution pension to any nominated beneficiary when they die, rather than paying the 55% tax charge which currently applies to pensions passed on at death."
I was kicked in the gonads with this tax and he didn't own property.
How is it fair that CEO's can leave £millions to the next of a kin in a few months time but a Labourer can't leave a few grand right now?
Since most of you sleep and breathe finance stuff, do you think there will be rebates in the future or is this permanent?0 -
Nonsense. It doesn't matter who it is, they will be taxed in the exact same way in that situation.Hi all, thanks for your replies.
"The Chancellor today (Monday 29 September) announced that from April 2015 individuals will have the freedom to pass on their unused defined contribution pension to any nominated beneficiary when they die, rather than paying the 55% tax charge which currently applies to pensions passed on at death."
I was kicked in the gonads with this tax and he didn't own property.
How is it fair that CEO's can leave £millions to the next of a kin in a few months time but a Labourer can't leave a few grand right now?
Highly unlikely to offer 'rebates'. We don't even know the exact details on it yet as it hasn't even become law. The Chancellor sets a vision, and the HMRC and Treasury then work out the important details on how it will work. There will be sort of catch to it.Since most of you sleep and breathe finance stuff, do you think there will be rebates in the future or is this permanent?Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.
Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.0
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