Inheritance tax

izawa

IHT is bad, you are punishing hard working people. IHT should be banned or at the very least make it to charge just 5%

John464

https://forums.moneysavingexpert.com/discussion/comment/82157139#Comment_82157139

Run that oned by me again please. When the Aristocracy inherit £billions of agricultural land tax free how it that earned income?

John464

https://forums.moneysavingexpert.com/discussion/comment/82156884#Comment_82156884

Obvious solution is to sell some of the land to pay the tax. Whoever buys it is bringing new people into farming. Especially as it will bring down the price of agricultural land if its no longer bought as an inheritance tax dodge. (making English agricultural land cost about 4 times as much as it does across the channel) Even more puzzling is the suggestion that if inheritance tax is charged on unearned land the same as other assets the land will no longer be farmed?

John464

Would be nice if we didn't have to pay tax.

But if you accept that we do have to pay tax, surely the least worse time to pay it is when we are dead and don't need the assets any more?

Albermarle

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The last 6 posts would normally result in the thread being closed down. Maybe still going as it is the weekend.

fuzzzzy

https://forums.moneysavingexpert.com/discussion/comment/82157186#Comment_82157186

With the threshold limits as they are it is possible to be in IHT territory on earned income and savings alone. It is not just the Aristocracy who are taxed.

MarzipanCrumble

Yup - I am one of those - not even factored in the house! Actually savings and uncrystalised SIPP.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82157139#Comment_82157139

Since the 18th century the accepted wisdom is that government regulates inheritance and even before that there were obviously rules of inheritance and probate. When the estate passes the the heirs that's a change of ownership and that is commonly taxed. IHT is often disliked because it comes at a very difficult time and so it might be seen as "bad" for the heirs, but it's not bad for the rest of society. So IMO IHT is not bad in principle, but there can be disagreements as to how it's implemented. Right now I think the IHT allowance for married home owners with children is sensible, but it's too low for single people without children. The tax above the allowance might also be made progressive. It seems strange to have a progressive income tax and a flat rate inheritance tax.

Eco_Miser

https://forums.moneysavingexpert.com/discussion/comment/82157190#Comment_82157190

How big do you think these farms are? If you split a farm 60-40 to pay the IHT, you end up with two uneconomic farms instead of one just about break-even farm. And why do you think the buyer would be new to farming? Far more likely to be a giant investment firm or a neighbouring farmer looking to farm more acres with the same manpower.

Or you could get planning permission for housing and sell for a much larger price (subject to CGT), and reduce our agricultural land permanently.

John464

https://forums.moneysavingexpert.com/discussion/comment/82157540#Comment_82157540

https://forums.moneysavingexpert.com/discussion/comment/82157240#Comment_82157240

The point is that tax policy can change. Goverrnment might have another go at Clarkson's agricultural land inheritance tax dodge.