Inheritance tax rant...

PosterBoy77

IHT is being taxed twice - it is paid from the estate by the person who dies, on the entire estate.

This goverment easily wastes more money every year than what IHT produces, plus a lot more. I may feel it was fairer if our taxes were spent wisely.

EdInvestor

moonrakerz wrote:

This is true, but this in itself almost a stealth tax. Anything passed to a surviving spouse adds to that person's estate; when they themself die, they only have a single person's allowance against IHT, so the first person's allowance is completely wasted.

Not if the couple split their assets and own their home as tenants in common - all you then need is a an agrreement covering a Nil Rate Band discretionary trust - which is quite cheap from your local solictor.

Then you get the benefit of both IHT tax free allowances and the surviving spouse also has control over all the assets for his or her lifetime.

EdInvestor

Hello Lil Dee

A couple of points

1.Pension death benefits do not normally land in the estate of the deceased: they are payable by the trustees of the pension fund direct to the beneficiaries and don't attract IHT

2.Within 2 years of someone' s death, an improperly written will can be changed completely via a Deed of Variation, providing all beneficiaries agree.

From what you say, it sounds as though you aren't getting very good legal advice.

moonrakerz

EdInvestor wrote:

Not if the couple split their assets and own their home as tenants in common - all you then need is a an agrreement covering a Nil Rate Band discretionary trust - which is quite cheap from your local solictor.

Then you get the benefit of both IHT tax free allowances and the surviving spouse also has control over all the assets for his or her lifetime.

That is just what I said ! ? ! ?

Andy_L

mikael wrote: »

IHT is being taxed twice - it is paid from the estate by the person who dies, on the entire estate.

The majority of "new" people subject to IHT are there due to house price inflation. Generally that increase has never been taxed, indeed in e.g my parents case they received MIRAS for pretty much the full duration of their mortgage so have had a tax break rather than double taxation.

Anyway whats new about double taxation - any non-tax free saving is double taxation as is buying anthing subject to VAT or excise duty

RayWolfe

Andy_L wrote: »

Anyway whats new about double taxation - any non-tax free saving is double taxation as is buying anthing subject to VAT or excise duty

VAT AND excise duty! i.e., duty on petrol and VAT on the duty. ;-)
These folks who quote double taxation seem not to live in the real world.

Andy_L

RayWolfe wrote: »

VAT AND excise duty! i.e., duty on petrol and VAT on the duty. ;-)
These folks who quote double taxation seem not to live in the real world.

So in fact we're looking at triple taxation when you add in income tax

RayWolfe

Quadruple if you include petroleum revenue tax (whatever it's called). Then there's corporation tax then there stamp duty, then there's NI on gross pay. That's the way it works. Vote to get the tax changed if you want but bear in mind it has to come from somewhere.
I think you will find that all governments do it and always have.

exil

Yes. Look elsewhere on MSE and you will find people clamouring for higher pensions, tax credits, help for people who are sick or disabled, free care for the elderly, free student tuition, etc, etc. It does have to come from somewhere - unless we encourage Gordon to borrow more and let future taxpayers foot the bill - in which case he might belong in the DFW forum.

In international terms we pay less tax than Europeans, and more than the Americans. But in America you have to pay an arm and a leg in medical insurance - or face being bankrupted by an ingrowing toenail.