Inheritance tax

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82154494#Comment_82154494

It's not hammering you though, because you are dead. Your inheritors are impacted by the tax paid via your estate, that's as it should be because they are getting money for nothing essentially.

artyboy

https://forums.moneysavingexpert.com/discussion/comment/82154755#Comment_82154755

well it could equally be said that the government is getting money for nothing.

Personally I'd like to be the one that decides where it goes after the millions they've already had out of me in tax over the years. But apparently that's not enough, and corpses are easy to milk. So I'll do what I can do to prevent being a dead cash cow while I'm still alive.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82154667#Comment_82154667

It is not my fault that my house has increased from £12.5k in 1977 and c £400k now, I had nothing to do with it. And having never moved I have never used it to my advantage. So why should my relations have to pay a tax on this excess value?

It is a bit unusual for someone to be complaining that their house went up in value.

Normal inflation would mean that £12500 in 1977, would be worth about £76K today, so your free untaxed house price increase benefit has been £324 K. So even if you pay 40% on that, you are still quids in.

Enzo_L

https://forums.moneysavingexpert.com/discussion/comment/82154755#Comment_82154755

You seem to assume that just because someone has amassed wealth during their lifetime the government is entitled to take it.

I disagree.

If I want to spend my own money, save it, give it away or leave it to someone in my will then that's perfectly reasonable because it is my money and not the government's.

Anyone who is given a gift of cash is "getting money for nothing essentially". That is the nature of gifts and of inheritance. It doesn't automatically follow that it is "as it should be" for the government to take the gift.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82155332#Comment_82155332

If I want to spend my own money, save it, give it away or leave it to someone in my will then that's perfectly reasonable because it is my money and not the government's.

That maybe your view, but the Govt can tax who it wants, when it wants and by how much it wants, as long as it can get the legislation through Parliament.

As the Govt supplies many expensive services ( Defence, Pensions, NHS, schools, police etc ) they can not run them on thin air, so they need your money ( and mine) .

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82155332#Comment_82155332

Governments regulate the disposition of property when someone dies. So there are laws concerning probate, wills, intestacy etc. and they also generally tax the transfer of wealth for the public good. There's obviously lots to discuss about this, but that's been the generally accepted framework since the 18th century.

I've lived and worked in the USA for most of my working life so a 325k IHT threshold and 40% tax after that seems draconian.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82154755#Comment_82154755

I want my heirs to get as much of my estate as they can. While I'm alive and doing my estate planning I can see how much my heirs will get and how much tax the estate will pay. Perhaps I should feel as much empathy for all UK citizens as I do for my immediate family, but honestly I want my nieces to inherit as much as possible.

phlebas192

I view IHT as deferred taxation. Scrap it and all that would mean is that more tax would be raised by other means. I for one would rather my estate paid tax after I'm dead and beyond all caring rather than paying more whilst alive.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82154215#Comment_82154215

House price inflation is a big problem especially for first time buyers. The "problem" of paying tax on the gains or inheritance of an expensive house is ultimately a nice thing to have. But the freezing of the IHT allowance for so long has brought many more estates within IHT territory over the last 20 years. It certainly hasn't kept pace with general inflation and the inclusion of pensions within the IHT estate will bring even more people into the net. 5% of estates currently pay IHT and without adjustments that is bound to increase and at some point it will become politically dangerous.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82155472#Comment_82155472

Nothing at all wrong with that - I'll be doing the same, but this is also a niche concern for the rich. 95% of estates don't meet the existing threshold and don't pay any IHT.