Daily Express Inheritance Tax Crusade

Musicman

Andy_L wrote:

You can pay the bill for property (& a few other things) over 10 years
http://www.hmrc.gov.uk/cto/customerguide/page12-6.htm

This is another of there IHT myths put about.

You can pay over 10 years, only if you do not sell the property, as soonn as you sell, the monies have to be paid.

Also to obtain probate, you have to pay the first 10%, OK if you have the money to hand, in either your account or the deceased estate.

ManAtHome

How about replacing it with a 0.5% annual property tax based on market value, with no exemption for non-domiciled owners..?

And why doesn't it surprise me that the daily diana thinks only property-owners are hard-working and thrifty?

exil

A property tax would be hard to administer, it would need houses to be valued every few years.

IHT is paid on the transfer of property from one person (who doesn't need it, being dead) to another (who recieves it as a windfall, having not earned it themselves). That's the beauty of it - as I've said, IMO it should be reformed not abolished.

DavidHM

Firstly, anyone who has an estate worth £285k+ has no right to complain if they can't be bothered to eliminate the tax on the second £285k with a proper will - and if they are too cash poor themselves, I'm sure plenty of family members would pony up £250 to avoid £114k of IHT.

Where I do have a problem though is with people who live in a property, such as unmarried partners, adult children etc. being forced to pay IHT. Even 4% PA over 10 years (equivalent to the capital redemption of a 100% mortgage over 25 years). Possibly if there were a band for the principal private residence of 2x the average property price (or thereabouts - no need for an official formula) plus, say £200k in other assets, that would alleviate cases of genuine hardship.

Having to pay 40% tax on a windfall (or rather, the element above £285k) does not constitute hardship for me - if the deceased were still alive, the beneficiary wouldn't be getting 60% but nothing at all.

cambsman

wow nearly 107k so far would prefer the govt to take the tax from this from elsewhere. All taxes are bad, but at least IHT takes it when you dont need it. Now stamp duty and petrol duty, those taxes are evil. Cut them. One forces people to take out larger debts to pay it, and the other has absolutely no bearing on ability to pay and cuts into family budgets, 25% by some estimates. I cant help thinking that the drive to get rid of IHT is being driven by the media elite who probably have lots of assets. Sure it shouldnt have been subject to fiscal drag, but thats the story accross the board with labour.

Cant say i'll be signing it anyway.