Family home exempt from death tax and affect on house prices?

Libra1975

There is a rumour going round that in response to Cons raising the inheritance tax limit to £1,000,000 that labour are going to propose that family homes are going to be exempt from inheritance tax, however isn't this going to skew the housing market even more? In fact isn't this going to benefit the richest instead of the poorest? Most people I know down-size as they get older, now they are going to be tempted to hold on to their houses so their money goes to their children thru the house rather than be taken by the gov't. I can't see why Labour think this is a good idea.

BobProperty

Libra1975 wrote: »

..... In fact isn't this going to benefit the richest instead of the poorest?.....

and this is something new?

Libra1975 wrote: »

.....I can't see why Labour think this is a good idea.....

Because they are politicians and they think it's a good idea. Nothing new in getting the details wrong, they do that all the time, then [STRIKE]lie[/STRIKE] spin the resultant consequences. Classic example is 5 years for carrying a gun (only applies to adults or over 21s IIRC). Look out for "sour grapes" legislation too, to get back at people over the Arctic Systems case.

pickles110564

I think that it is great news, we will be able to stay in our lovely huge home, knowing everything will go to our children.:j :beer: :T

Libra1975

I don't know how big your lovely huge home is but do you really feel like being 92 and having to clean 4 bedrooms, go up and down stairs and look after a 100ft garden? Not many 92 year olds I know would be able to manage to look after a big house.

Guy_Montag

I've heard something like this too. Another f'king stupid idea, all it will do is encourage people to stay in inappropriate accommodation. In the mean time, because everyone is doing this their kids will be stuck in small flats & unable to start a family. So no grandkids for Pickles.

Debt_Free_Chick

I find the current obsession with leaving an inheritance for the kids to be just a little bizarre.

Parents who have worked hard all their lives should consider being just a little bit selfish and enjoying their retirement. Instead, they struggle on with inappropriate properties, when they could downsize, cut their living expenses and enjoy just a little luxury.

Or they could downsize and gift to their kids, who are then probably in their 40s and could really do with some cash to help with the cost of raising their family (i.e. their parents' grandchildren).

There is "more than one way to skin a cat" and being obsessed with passing on the family home is not the only way.

pickles110564

Guy_Montag wrote: »

In the mean time, because everyone is doing this their kids will be stuck in small flats & unable to start a family. So no grandkids for Pickles.

We will hand over a two bed BTL each for our children so If God will bless us we may still be able to have grandchildren

pickles110564

Debt_Free_Chick wrote: »

There is "more than one way to skin a cat" and being obsessed with passing on the family home is not the only way.

You seem to have the old green eyed monster.

Debt_Free_Chick

pickles110564 wrote: »

You seem to have the old green eyed monster.

What on earth gives you that idea? You know nothing about me or my circumstances.

It just appears to me - and maybe it's a misconception - that there are too many people who have not considered any other options in their lives. I work with very many pensioners who are sitting on pots & pots of equity, but living on the breadline - simply because they feel they have a duty (and, dare I say, an expectation) that they will pass on the family home to their children.

We are living longer. If you are 80 when you die, then your children are, on average, likely to be in their mid-50s. A windfall of £400k would be nice - yes. But necessary? And at the expense of their parents comfort?

I hasten to add, that my own parents are in this same situation and nothing I can do or say will persuade them to trade down. Yet they claim pension credit, CT benefit and a whole host of other benefits, whilst my mother still barters down the market for a 20p reduction off a joint of meat.

It makes my blood boil!!!! I don't need their money!!!!

pickles110564

Debt_Free_Chick wrote: »

.

A windfall of £400k would be nice - yes. But necessary?
Yet they claim pension credit, CT benefit and a whole host of other benefits, whilst my mother still barters down the market for a 20p reduction off a joint of meat.

Why should we not be allowed to hand down ( free of tax ) our home that we have worked very hard all our life for?
Likewise why should your parents not claim what they are entitled to, after all they would have worked and paid into the pot.
Its all the spongers and imigrants that makes my blood boil, why should i be taxed so heavily so that they can sent all their dole and child benefits back to some other european country?

Debt_Free_Chick

pickles110564 wrote: »

Why should we not be allowed to hand down ( free of tax ) our home that we have worked very hard all our life for?

No reason, provided they have considered other options and aren't just being bullied by bloodsucking children .

Likewise why should your parents not claim what they are entitled to, after all they would have worked and paid into the pot.

No reason - but this is not their only option. They do not have to claim benefits in the first place - they actually have a choice.

Its all the spongers ...

Some people would put my parents in that class - they are claiming benefits when they have no need to. I have a certain amount of sympathy with that view, too.

and imigrants that makes my blood boil, why should i be taxed so heavily so that they can sent all their dole and child benefits back to some other european country?

Where is your evidence for this - oh, I know ... the Daily Mail

In actual fact, there are more working immigrants paying income tax than there are claiming benefits. Legitimate, working immigrants are net donors to our economy. Far too many of them are far too proud to claim benefits, in any event.

I'm pretty sure that immigrants can't claim benefits - or can only claim a certain amount or certain benefits. I'm sure they can't claim Jobseekers' Allowance (which, incidentally, replaced "the dole" years ago).