Conservatives in disarray over 'sooner or later' tax promise

lostinrates

dealsearcher wrote: »

1. You pay tax on your salary
2. You pay tax on anything you purchase with your net salary
3. You pay tax on the the interest of any savings you have after 1. and 2.
4. You pay tax when you die on what's left after being 'prudent' all your life

How many times does the government need to tax us?

Personally, I'd rather see tax cuts for savings than inheritance. Of use while you are alive, fairer to the next generation

Generali

Also from The Times, an interesting piece on taxation over the next 20 years or so (IIRC, Sir H you've had problems explaining where the money is going to come from to repay all the debt the UK Government is building up on behalf of children throughout the UK):

http://www.timesonline.co.uk/tol/comment/columnists/daniel_finkelstein/article5883988.ece

British politics isn't going to be dominated by interesting debates on the future of capitalism. It isn't going to be the stage for a revival of interest in democratic socialism. It isn't going to play host to the interplay of competing ambitious projects. No. We're in for a hard slog. Because what British politics is going to be about in the next ten years is living with the consequences of the State being broke, of the Government running out of money. .......


In January the Institute for Fiscal Studies published its 2009 Green Budget. Having described the incredibly painful cuts in projected public spending that have already been announced, the IFS says: “If the public finances evolve as the Treasury hopes, this tightening would have to remain in place until the early 2030s before debt returns below the ceiling of 40 per cent of national income Gordon Brown set as one of his fiscal rules.....

Andy_L

dealsearcher wrote: »

1. You pay tax on your salary
2. You pay tax on anything you purchase with your net salary
3. You pay tax on the the interest of any savings you have after 1. and 2.
4. You pay tax when you die on what's left after being 'prudent' all your life

How many times does the government need to tax us?

There are a wealth of tax free savings/investment vehicles available.

Most people are only paying IHT due to house price inflation. That gain in value hasn't been taxed & may well have had tax relief (via MIRAS) when it was being bought.

Generali

lostinrates wrote: »

ersonally, I'd rather see tax cuts for savings than inheritance. Of use while you are alive, fairer to the next generation

I'd rather pay tax once dead than while still alive.

As a caveat, I have children and I should also inherit above the IHT limit in the UK.

StevieJ

Generali wrote: »

Personally, I think IHT should be paid at a rate of (say) 80% on all assets other than the family home (excluding associated land) unless there isn't a family home in which case IHT-free assets should reflect that.

People shouldn't get a free ride in life just because Daddy was rich.

If you were Warren Buffetts son/daughter you would still get a free ride with 80% tax

lostinrates

Generali wrote: »

I'd rather pay tax once dead than while still alive.

As a caveat, I have children and I should also inherit above the IHT limit in the UK.

Well, it would be reasonably unlikely I would inherit over the UK limit, (my parents' are not at finacially aware or educated). They have pensions, the odd premium bond, but really very few, NO other tax free savings -I do try and tell them!- and my mother is a demon with her credit card- everything they have is from my dad wroking hard and making 'traditional' investments like a house and a pension. When I was more successful in my own right I gave my dad some money (which he was very unhappy about) to offset in savings or a higher risk investment of some sort, against his mortgage, but they paid of the mortgage all but the bit they would have got a penalty with instead. Its a shame, that would have been worth quite a bit to them when the mortage was paid off. I'm quite like themin some way: hate debt, but I'm less scared of it, and more prepared to try and become more educated. Even if I stood to, I'd like to see my parents spend it on a wonderfully fulfilling and exciting retirment. In fact, plans are currently affoot to help them do just that. I actually don't really care about inheriting a penny of cash, though there are things I'd like and I suppose if you had loaded parents who had things of real value as well as emotional value that could be very upsetting if you could't afford to buy them from the estate. I know that there are things other family members would like too. FWIW, I would be happy, under existing law, to see my parents grandchildren inherit rather than the children. I know how my parents plan to divide anything left, which is oddly comforting, because lots of thought has gone in it. But I still want them to enjoy as much of it as bloody well possible on enjoyment.

Generali

StevieJ wrote: »

If you were Warren Buffetts son/daughter you would still get a free ride with 80% tax

Wozza reckons his kids won't be inheriting much beyond an education. At present it looks like my kids will be inheriting roughly what Wozza's will. Oh well.

Walter_J

It's interesting how inheritance tax has become a bit of a non-issue over the last 12 months.

The realisation is perhaps sinking in that with tumbling house values and pensions combined with increasing life expectancy and the high cost of elderly care hardly anyone in the future is going to inherit anything!

StevieJ

Generali wrote: »

Wozza reckons his kids won't be inheriting much beyond an education. At present it looks like my kids will be inheriting roughly what Wozza's will. Oh well.

Settle for the contacts

Generali

StevieJ wrote: »

Settle for the contacts

My mate meets him annually to explain himself so I think it would be fair to say Mr Buffet is a friend of a friend.

How much money have I made from this near-unparalleled access? Well the number begins with Zed and rhymes with Nero.