Martin's advice on Inheritance Tax - But what about single people who are again being penalised?

Awaytothehills

May I start by saying how much I admire the advice you give and the campaigns you support, however I think it might be worth your while reviewing your general advance to the effect that "the vast majority of people won't pay inheritance tax".  Especially as it applies to single people who are property owners (again especially in the South East where prices are higher). This is because they are not able to benefit from passing on a partners property allowance and therefore more likely to fall into the tax trap.  I would like my cousins children to benefit from my life's work when I die as I have no children of my own.  They like all young people today are struggling to buy homes and raise a family, and as a result of their parents divorce are unlikely to inherit much from their own parents. The UK tax system is notoriously unbalanced and unfair and this is just one of many examples of the way that single people are disadvantaged in our society. Other examples include paying a higher pro-rata rate of council tax, single person room supplements, higher energy bills as the standing charge element of the bill is not shared between other cohabiting adults, greater food wastage as supermarkets always favour families with their bulk-buy deals and more expensive smaller sized products and so it goes on.

horsewithnoname

You make your choices in life and that’s the way it goes. I’m single so no axe to grind, and if my godchildren have to pay IHT, well they’ll be grateful for the amount they do get. 

Tax isn’t a “trap” it’s the price of living in a developed society. 

Mark_d

It's tough being single but there are clear reasons for it.  A flat consumes roughly the same amount of gas/elec regardless of how many people there are.  A car costs as much to run whether there's one, or more, people in the car.  A hotel wants revenue of £60 per room per night.  They have to clean the room and change the linen regardless of whether one or two people stay in the room.

But a single person could team up with another single person and share a twin room at the hotel, car share for their commute - manage their cooking, cleaning etc. together.

In terms of inheritance tax I'd be happy with 100% inheritance tax across the board.  That would mean people have fairer chances in life, rather than some people becoming millionaires purely because of their parents successes.

silvercar

Mark_d said:

In terms of inheritance tax I'd be happy with 100% inheritance tax across the board.  That would mean people have fairer chances in life, rather than some people becoming millionaires purely because of their parents successes.

It actually wouldn't. People would be more inclined to pass money to their children in their life time, thereby giving their offspring more money at an earlier stage.

Hoenir

silvercar said:

Mark_d said:

In terms of inheritance tax I'd be happy with 100% inheritance tax across the board.  That would mean people have fairer chances in life, rather than some people becoming millionaires purely because of their parents successes.

It actually wouldn't. People would be more inclined to pass money to their children in their life time, thereby giving their offspring more money at an earlier stage.

Those with money already do. 

Keep_pedalling

I think the current system with the NRB and RNRB is too complicated and is unfair to people without children or well off people with children but who choose to rent. I would like to see the abolition of the RNRB and an increase in the NRB exemption which as well as being fairer would cut out the need to compleat an IHT return on the vast majority of estates that have no IHT liability. 

Emmia

I'd like the same IHT thresholds whether people have children or not, £325k each - use of residuals if legally married/civil partnered no additional allowance for having children.

MattMattMattUK

I find Inheritance Tax immoral, it is a tax that should not exist. It should be abolished, together with SDLT on residential property. 

kempiejon

Awaytothehills said:

May I start by saying how much I admire the advice you give and the campaigns you support, however I think it might be worth your while reviewing your general advance to the effect that "the vast majority of people won't pay inheritance tax".  Especially as it applies to single people who are property owners (again especially in the South East where prices are higher). This is because they are not able to benefit from passing on a partners property allowance and therefore more likely to fall into the tax trap.  I would like my cousins children to benefit from my life's work when I die as I have no children of my own.  They like all young people today are struggling to buy homes and raise a family, and as a result of their parents divorce are unlikely to inherit much from their own parents. The UK tax system is notoriously unbalanced and unfair and this is just one of many examples of the way that single people are disadvantaged in our society. Other examples include paying a higher pro-rata rate of council tax, single person room supplements, higher energy bills as the standing charge element of the bill is not shared between other cohabiting adults, greater food wastage as supermarkets always favour families with their bulk-buy deals and more expensive smaller sized products and so it goes on.

We know the estate pays the tax. Single people are just as dead as those married, childless and childwith. Just as dead.

It's an interesting slant though but I can't quite see what the problem is with being single with no children and dead.
I have lived much of my life single and all of it childless and the nuisance that friends with partners and kids seem to suffer far out weigh paying 75% council tax. My personal and financial position is much improved by lack of others in it. 

I will have a little think about how I have been discriminated against though in case I have missed the point.

For those cousins' children give them money while you're alive so they can appreciate you more and you get to see the impact of your largess. Like Mr Carnegie said "The man who dies thus rich dies disgraced."

horsewithnoname

MattMattMattUK said:

I find Inheritance Tax immoral, it is a tax that should not exist. It should be abolished, together with SDLT on residential property. 

I find greedy people who hoard money immoral. 

MattMattMattUK

horsewithnoname said:

MattMattMattUK said:

I find Inheritance Tax immoral, it is a tax that should not exist. It should be abolished, together with SDLT on residential property. 

I find greedy people who hoard money immoral. 

How is building a business, buying assets from already taxed income, building or buying a home from already taxed income in any way hoarding, or immoral?