Unless you intend to die penniless

[Deleted User]

Yes, quite.

zagfles

Well if you're intending using a pension to pass on wealth you'd better hope Labour don't win the election - they would almost certainly close this loophole, which is what it is really. Using a "pension" to avoid IHT.

Though their manifesto seems makes no mention of inheritance or the £125k "gift allowance" they were talking about replacing IHT with, I guess they've learnt from the Tories mistake last time.

Thrugelmir

ZingPowZing wrote: »

If the pensioner dies before the age of 75, it flows down tax-free!
Thereafter, the legatees are taxed at their individual rate; therefore, if the pensioner spreads his inheritance wisely and widely, tax can be circumvented.

I was referring to post 75 in age.

Seems we agree that some tax will still be payable..........:think:

[Deleted User]

zagfles wrote: »

Well if you're intending using a pension to pass on wealth you'd better hope Labour don't win the election - they would almost certainly close this loophole, which is what it is really. Using a "pension" to avoid IHT.

Though their manifesto seems makes no mention of inheritance or the £125k "gift allowance" they were talking about replacing IHT with, I guess they've learnt from the Tories mistake last time.

So, #totallyunfoundedscaremongering ?
And even if it was a thing, what about those fortunate enough to survive the next five years?

Dia_Pita

We are hoping to buy a small holiday home abroad to leave to our 3 adult children to use as a holiday home. We feel they would get more out of this than a couple of grand in the bank.

Audaxer

bostonerimus wrote: »

My goal is to never spend a penny of my DC pension pots and other investments and leave large amounts to charity and to my family.

bostonerimus, I know from previous posts that you have grown a significant pot over the last 30 years. Was it never your intention to spend any of that on yourself?

zagfles

ZingPowZing wrote: »

So, #totallyunfoundedscaremongering ?
And even if it was a thing, what about those fortunate enough to survive the next five years?

You really need to google what the likes of Corbyn, McDonnell and their colleagues have said on the subject. It's a fundamental principle of their brand of socialism that "entrenched privilege" should be tackled and that means making it harder to pass wealth down the generations.

Even I, who would never vote for them in a million years, have some sympathy for the idea of closing what really is a gaping (and probably deliberate) loophole allowing pensions to be used as a method to circumvent IHT.

[Deleted User]

zagfles wrote: »

You really need to google what the likes of Corbyn, McDonnell and their colleagues have said on the subject. It's a fundamental principle of their brand of socialism that "entrenched privilege" should be tackled and that means making it harder to pass wealth down the generations.

Even I, who would never vote for them in a million years, have some sympathy for the idea of closing what really is a gaping (and probably deliberate) loophole allowing pensions to be used as a method to circumvent IHT.

And the property loophole?
If not, why?

coastline

zagfles wrote: »

Well if you're intending using a pension to pass on wealth you'd better hope Labour don't win the election - they would almost certainly close this loophole, which is what it is really. Using a "pension" to avoid IHT.

Though their manifesto seems makes no mention of inheritance or the £125k "gift allowance" they were talking about replacing IHT with, I guess they've learnt from the Tories mistake last time.

Its mentioned as revenue raised in "Other" early on in the figures and page 38 way lower down. Basically saying a reverse of recent changes .

https://labour.org.uk/wp-content/uploads/2019/11/Funding-Real-Change.pdf

Based on this report.

https://www.ippr.org/research/publications/a-wealth-of-difference

https://metro.co.uk/2019/07/01/labour-tax-plan-could-stop-parents-passing-on-homes-to-kids-10095642/

If it includes homes then there's not many under £125,000 ? Basically hitting millions of Labour voters.

zagfles

ZingPowZing wrote: »

And the property loophole?
If not, why?

See above. Already in their costings document.