Inheritance tax too high or too low?

Former_MSE_Archna

Poll Title: Poll Started 19 September 2006: Inheritance tax too high or too low? Currently leave your wealth to family/friends and everything over 40% of £285,000 goes to the taxman (unless you follow the loopholes). So is this a tragedy stopping us from helping our families by paying tax on hard earned, already taxed money? Or should the tax be higher to stop perpetuating inherited privilege so the rich stay rich and the poor poor. Three simple stark choices; which is closest to your view?

A. No inheritance tax. Hard earned cash should all be passed on
B. Keep it as is. It's roughly the right balance at the moment
C. Double it. It'll lead to a society based on merit not inheritance

elona

(A)
We are taxed when we earn, when we save, when we spend and even when we die!!!!

Surprised they have not worked out a way to tax the air we breath!

Scarlet_Fever

i think there should be some limit on inheritance tax - and that it should be raised (due to house prices)

I know we work hard for our money ( i know i do) and i want to give as much help as i can to my children (both young at present) but it is that really, a gift! you haven't worked for it - your parents did, and they're gone! (ducks head runs for cover) and i think that you should be able to give more gifts when you are alive (is the limi taround £3k? or am i making that up)

what gets me though is the rich lot who shove everything in trust funds and avoid paying tax purely because they have the money to do it - THAT's what should be investigated, not mrs bloggs in her 80's leaving her house to her children....

Scarlet_Fever

elona wrote:

(A)
We are taxed when we earn, when we save, when we spend and even when we die!!!!

Surprised they have not worked out a way to tax the air we breath!

people complain about taxes, but i think we need to pay what we can - rich people should pay more (tax free havens should not be allowed) if you dont contribute - then get out!! (oohh mrs angry here!)

pud_2

What bothers me is that forexample my collegues earn what i earn and are friends of mine but choose not to have savings or pensions, own homes etc,fine their choice, but i've made different choices. this is not an issue of rich and poor we earn the same so why do i get my !!! kicked for that? i wont have a house to leave as it'll go paying for the nursing home they'll get for free!

susanc05

elona wrote:

(A)


Surprised they have not worked out a way to tax the air we breath!

.... They have ... Congestion Charges!

Inheritance tax is a rip off - people who complain that just the 'rich' should pay it are just perpetuating the 'class wars' of yesteryear - virtually everyone who owns even the smallest property and saves a little is at risk from this grossly unfair tax - why should ordinary law abiding tax payers pay through the nose during their lifetime (on earnings, savings, pensions) and then have whatever is left taxed again? What encouragement is there to save for old age if you may not last long enough to use it all up?

Thefunkygibbons

The government has us over a barrell, we need to save to pay for care home costs and they tax us on the savings and then if we die early, then they hit us again

This is a tax on middle England, it completely misses the super wealthy and the poor

JBEILBY

Robber Brown can't get rid of IHT he makes too much money from it!

Luckyal_3

It's pointless to complain about tax. But if you don't like IHT don't pay it.

Trusts and other ways of avoiding or minimizing your liability are available to everyone and there are plenty of people out their willing to help you. Of course you may have to pay for their expertise (and some of the solutions are complicated) at least until Martin comes up with a free guide.

going2die_rich

C - Double it!

A lot of the people dying off now haven't earned all the money they are leaving behind!

It's due to the property prices increasing so much that they have vast amounts of money to leave to their children.

I think the inheritenance tax should be higher else it's just keeping the rich rich.

Why do those that are getting the inheritenance money think they are entitled to money that others have earned. Everyone should be earning their own money without expecting huge amounts from what their parents have earned. That money should be put back into society to help those that need it.

Parents pay for the upbringing of their children and help them throughout life, even nowadays paying for deposits of their childrens first homes! They shouldn't be paying for their children when they are dead too.

Surely if the taxes were so high on inheritenance, these older people would spend more and enjoy what they have earned. Instead of hoarding it away to give to their children who should really be supporting their parents not the other way round at that time of life.

NatFeerick

I think IHT is the most immoral tax ever! We pay taxes on everything all our lives then the government wants to tax what's left when we die!

I think the whole tax system could be simpler. I don't think its fair that someone's income tax rate should be higher just because they earn more - it should be enough that 25% of £50000 is a bigger sum of money than 25% of £10000 - though its fair enough to take into account benefits in kind like car, PHI, etc. Also it shouldn't be down to how devious people are at finding tax loopholes to determine how much they keep in their own pockets - it just all needs to be fairer. What's wrong with people being rich? It means they have more to spend and that keeps the economy going. All different rates of taxation do is widen the gap between rich and poor by putting money into the government's pocket - a fairer taxation system would make it possible to increase the minimum wage without demands at the top end of the scale for employers to pay more to compensate for higher income tax.