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

sheramber

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.

You could gift your cousin's children something  each year. As long as you lie for 7 years afterwards no tax involved.

You do realise this is a public forum which Martin sold many years ago.

If you want to direct your thoughts to him you need to contact him direct

horsewithnoname

MattMattMattUK said:

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?

What are you even on about!

MattMattMattUK

horsewithnoname said:

MattMattMattUK said:

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?

What are you even on about!

The reason people have to pay inheritance tax is because they have accumulated wealth, usually through business, well paid careers, building things, etc. You seem to deem that as "hoarding" and "greed" and feel that those things bought and/or accumulated through the use of already taxed income should be taxed again just because someone has the misfortune to die. The fact that you cannot come back with a valid defence of your position and instead come back with a comment like that says all one needs to know. 

Emmia

MattMattMattUK said:

horsewithnoname said:

MattMattMattUK said:

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?

What are you even on about!

The reason people have to pay inheritance tax is because they have accumulated wealth, usually through business, well paid careers, building things, etc. You seem to deem that as "hoarding" and "greed" and feel that those things bought and/or accumulated through the use of already taxed income should be taxed again just because someone has the misfortune to die. The fact that you cannot come back with a valid defence of your position and instead come back with a comment like that says all one needs to know. 

Death isn't misfortune, it's one of the inevitable facts of life... It happens to us all eventually.

P1Fanatic

MattMattMattUK said:

horsewithnoname said:

MattMattMattUK said:

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?

What are you even on about!

The reason people have to pay inheritance tax is because they have accumulated wealth, usually through business, well paid careers, building things, etc. You seem to deem that as "hoarding" and "greed" and feel that those things bought and/or accumulated through the use of already taxed income should be taxed again just because someone has the misfortune to die. The fact that you cannot come back with a valid defence of your position and instead come back with a comment like that says all one needs to know. 

Some may have earnt it others born into it. Whilst I disagree about being taxed twice I do see the rationale behind trying to stem generational wealth being handed down forever more. But the thresholds need raising imho. I still cant get how only 4% are paying any IHT - surely that number has to be skewed because the majority are passing onto spouses / partners tax free rather than their children? Even with the £500k limit if a main residence is included is too low especially in the south. 2 bed semi next door to me sold for £410k last week. So only £90k of other assets and you are paying IHT.

silvercar

P1Fanatic said:

MattMattMattUK said:

horsewithnoname said:

MattMattMattUK said:

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?

What are you even on about!

The reason people have to pay inheritance tax is because they have accumulated wealth, usually through business, well paid careers, building things, etc. You seem to deem that as "hoarding" and "greed" and feel that those things bought and/or accumulated through the use of already taxed income should be taxed again just because someone has the misfortune to die. The fact that you cannot come back with a valid defence of your position and instead come back with a comment like that says all one needs to know. 

Some may have earnt it others born into it. Whilst I disagree about being taxed twice I do see the rationale behind trying to stem generational wealth being handed down forever more. But the thresholds need raising imho. I still cant get how only 4% are paying any IHT - surely that number has to be skewed because the majority are passing onto spouses / partners tax free rather than their children? Even with the £500k limit if a main residence is included is too low especially in the south. 2 bed semi next door to me sold for £410k last week. So only £90k of other assets and you are paying IHT.

If it isn’t passed down on death, or spent on world cruises, it will be spent in the life time of the donor, giving financial advantage throughout the lifetime of the offspring rather than in later life, so it doesn’t make much difference. Basically passing to spouses has to be tax free or there will be people forced to sell family homes at times of grief, in order to pay taxes.

Don’t put spouses/ partners in the same clause, the tax treatment is very different.

Albermarle

May I start by saying how much I admire the advice you give and the campaigns you support.

OP- Just be aware that Martin Lewis does not inhabit these forums ( as far as I am aware) . This is an open public forum ( that just happens to be hosted and moderated by the MSE website) Any comments or answers are unconnected to Martin Lewis in any way.
The forum is primarily a consumer forum to help people with queries about tax. Probably the thread will get shut down due to some of the comments going somewhat off topic. 

Andy_L

P1Fanatic said:

MattMattMattUK said:

horsewithnoname said:

MattMattMattUK said:

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?

What are you even on about!

The reason people have to pay inheritance tax is because they have accumulated wealth, usually through business, well paid careers, building things, etc. You seem to deem that as "hoarding" and "greed" and feel that those things bought and/or accumulated through the use of already taxed income should be taxed again just because someone has the misfortune to die. The fact that you cannot come back with a valid defence of your position and instead come back with a comment like that says all one needs to know. 

Some may have earnt it others born into it. Whilst I disagree about being taxed twice I do see the rationale behind trying to stem generational wealth being handed down forever more. But the thresholds need raising imho. I still cant get how only 4% are paying any IHT - surely that number has to be skewed because the majority are passing onto spouses / partners tax free rather than their children? Even with the £500k limit if a main residence is included is too low especially in the south. 2 bed semi next door to me sold for £410k last week. So only £90k of other assets and you are paying IHT.

If the married couple left it all to the spouse on the first death & the survivor then leaves it to their children they get an £825k IHT allowance (the £325k individual allowance twice as they didn't use it the first time plus the £175k residence allowance)

Albermarle

Andy_L said:

P1Fanatic said:

MattMattMattUK said:

horsewithnoname said:

MattMattMattUK said:

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?

What are you even on about!

The reason people have to pay inheritance tax is because they have accumulated wealth, usually through business, well paid careers, building things, etc. You seem to deem that as "hoarding" and "greed" and feel that those things bought and/or accumulated through the use of already taxed income should be taxed again just because someone has the misfortune to die. The fact that you cannot come back with a valid defence of your position and instead come back with a comment like that says all one needs to know. 

Some may have earnt it others born into it. Whilst I disagree about being taxed twice I do see the rationale behind trying to stem generational wealth being handed down forever more. But the thresholds need raising imho. I still cant get how only 4% are paying any IHT - surely that number has to be skewed because the majority are passing onto spouses / partners tax free rather than their children? Even with the £500k limit if a main residence is included is too low especially in the south. 2 bed semi next door to me sold for £410k last week. So only £90k of other assets and you are paying IHT.

If the married couple left it all to the spouse on the first death & the survivor then leaves it to their children they get an £825k IHT allowance (the £325k individual allowance twice as they didn't use it the first time plus the £175k residence allowance)

It is One Million ( not £825K) as the unused £175K allowance can also be passed onto a spouse