| Inheritance Tax 13:04 - Nov 18 with 4614 views | johnlangy |
There is talk about the possibility that Jeremy Hunt will abolish this in the upcoming Autumn statement.
Can someone please explain to me why this is such a popular idea with so many ordinary people ? |  | | |  |
| Inheritance Tax on 10:13 - Nov 19 with 1397 views | controversial_jack |
| Inheritance Tax on 21:14 - Nov 18 by SullutaCreturned |
You don't have to risk IHT on your house, you can sign it into trust for your kids or just sign it over completely once the mortgage is paid and as long as you live 7 years after you do that they don't pay tax, at least that used to be the rule.
There are things you can do to keep taxes down, legal things, just go see a good lawyer. |
Good points, but that's not the case. There is no 7 year rule, never has been.That's what our solicitor told us 20 odd years ago | | | |
| Inheritance Tax on 10:22 - Nov 19 with 1388 views | Whiterockin |
| Inheritance Tax on 10:13 - Nov 19 by controversial_jack |
Good points, but that's not the case. There is no 7 year rule, never has been.That's what our solicitor told us 20 odd years ago |
Plus it's an absolute minefield if a child gets divorced. |  | | |
| Inheritance Tax on 10:27 - Nov 19 with 1371 views | majorraglan |
| Inheritance Tax on 10:13 - Nov 19 by controversial_jack |
Good points, but that's not the case. There is no 7 year rule, never has been.That's what our solicitor told us 20 odd years ago |
There is a 7 year rule however there are creating circumstances that can void the tax, it’s all on the HMRC web site. Are you mixing up the transfer of an asset to prevent having to pay for care home fees? That’s a different kettle of fish completely. | | | |
| Inheritance Tax on 10:38 - Nov 19 with 1350 views | controversial_jack |
| Inheritance Tax on 10:27 - Nov 19 by majorraglan |
There is a 7 year rule however there are creating circumstances that can void the tax, it’s all on the HMRC web site. Are you mixing up the transfer of an asset to prevent having to pay for care home fees? That’s a different kettle of fish completely. |
Yes, i think you are correct. We were told that if the transferee can prove they have contributed to the building then they could probably avoid paying fees | | | |
| Inheritance Tax on 10:41 - Nov 19 with 1350 views | onehunglow |
| Inheritance Tax on 14:02 - Nov 18 by SullutaCreturned |
Maybe they should just raise the threshold? Set it at 5 million say, so only the uber rich will pay any.
Or maybe have a staggered/graded percentage from 2 million up?
I think 325000 is far too low considering the way property prices have risen, it drags a lot of peole in.
When my sster died I was staggered to discover that her half of the estate included an house estimate of 660k for a 3 bed in Whitchurch, so 330k staright off it it sells for the top price. Nobody would say they were rich, nor poor mind. |
Says it all.
330 is your average semi
conservatives stand damned over this subject as they purport to support hard working thrift families .
They do not [Post edited 19 Nov 2023 10:41]
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| Inheritance Tax on 11:48 - Nov 19 with 1317 views | KeithHaynes |
Great thread,and why people come here and enjoy the site.
This post has been edited by an administrator |  |
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| Inheritance Tax on 18:00 - Nov 19 with 1224 views | johnlangy |
| Inheritance Tax on 14:20 - Nov 18 by Whiterockin |
The £325,000 is raised to £500,000 if the property passes directly to children or grandchildren. If a couple change the house ownership from both owning the property jointly to each owning 50% you can raise the threshold to £1M. This needs to be done properly through a solicitor but can be worthwhile as it can also reduce any nursing home liability. |
I suppose this illustrates the point I was making in creating the thread.
There have been many good points made, generally where people may get dragged into paying the tax. But if only 5% end up paying it that leaves 95% who won't. The £500,000 Whiterockin mentions more than covers the vast majority of the 95% I mention. And £1m would probably cover all of them.
So again, why is it so popular even with many of that group ? | | | |
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| Inheritance Tax on 18:10 - Nov 19 with 1206 views | Whiterockin |
| Inheritance Tax on 18:00 - Nov 19 by johnlangy |
I suppose this illustrates the point I was making in creating the thread.
There have been many good points made, generally where people may get dragged into paying the tax. But if only 5% end up paying it that leaves 95% who won't. The £500,000 Whiterockin mentions more than covers the vast majority of the 95% I mention. And £1m would probably cover all of them.
So again, why is it so popular even with many of that group ? |
John as you get older you plan for things and can make provisions. I know of single people who have died in their 50s and ran businesses. Their children got hammered with inheritance tax including the value of the business, even though the value of the business would never be the same without them running it. Value is always at the time of death, another unfair aspect of inheritance tax. | | | |
| Inheritance Tax on 18:12 - Nov 19 with 1198 views | Gwyn737 |
| Inheritance Tax on 18:00 - Nov 19 by johnlangy |
I suppose this illustrates the point I was making in creating the thread.
There have been many good points made, generally where people may get dragged into paying the tax. But if only 5% end up paying it that leaves 95% who won't. The £500,000 Whiterockin mentions more than covers the vast majority of the 95% I mention. And £1m would probably cover all of them.
So again, why is it so popular even with many of that group ? |
I won’t say it’s a tax on the wealthy as for many of the 4% it’s come through good fortune through property price increase and not for not scrimping and saving.
Seems to have the same blind spot as private schools which is another area where some talk about saving and making sacrifices to gain access.
To put 2 children right through private school from today would cost about £1.3 million.
Is it possible to scrimp and save £1.3 million? [Post edited 19 Nov 2023 18:23]
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| Inheritance Tax on 18:29 - Nov 19 with 1169 views | Whiterockin |
| Inheritance Tax on 18:12 - Nov 19 by Gwyn737 |
I won’t say it’s a tax on the wealthy as for many of the 4% it’s come through good fortune through property price increase and not for not scrimping and saving.
Seems to have the same blind spot as private schools which is another area where some talk about saving and making sacrifices to gain access.
To put 2 children right through private school from today would cost about £1.3 million.
Is it possible to scrimp and save £1.3 million? [Post edited 19 Nov 2023 18:23]
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It may be 4% at the moment but the percentage is rising quickly.
The most recent HMRC statistics show less than 4% of estates paid inheritance tax in 2020–21. However, the rapid growth in wealth among older individuals means this number is set to rise to over 7% by 2032–33.
The number of people affected by inheritance tax will be still larger. One in eight people (12%) will have inheritance tax due either on their death or their partner’s death by 2032–33.
This varies dramatically between the different regions of the country: in London, around 23% of people (or their surviving spouse or civil partner) will pay inheritance tax, almost twice the national average and five times higher than in the North East. | | | |
| Inheritance Tax on 19:40 - Nov 19 with 1126 views | Gwyn737 |
| Inheritance Tax on 18:29 - Nov 19 by Whiterockin |
It may be 4% at the moment but the percentage is rising quickly.
The most recent HMRC statistics show less than 4% of estates paid inheritance tax in 2020–21. However, the rapid growth in wealth among older individuals means this number is set to rise to over 7% by 2032–33.
The number of people affected by inheritance tax will be still larger. One in eight people (12%) will have inheritance tax due either on their death or their partner’s death by 2032–33.
This varies dramatically between the different regions of the country: in London, around 23% of people (or their surviving spouse or civil partner) will pay inheritance tax, almost twice the national average and five times higher than in the North East. |
I have issues with it too.
My take is that if we’re going to have tax cuts I probably wouldn’t start here. | | | |
| Inheritance Tax on 19:53 - Nov 19 with 1115 views | Whiterockin |
| Inheritance Tax on 19:40 - Nov 19 by Gwyn737 |
I have issues with it too.
My take is that if we’re going to have tax cuts I probably wouldn’t start here. |
I don't disagree with that statement, but it still needs to be tweaked and it wouldn't necessarily mean it would raise less tax. | | | |
| Inheritance Tax on 09:50 - Nov 22 with 901 views | johnlangy |
| Inheritance Tax on 18:29 - Nov 19 by Whiterockin |
It may be 4% at the moment but the percentage is rising quickly.
The most recent HMRC statistics show less than 4% of estates paid inheritance tax in 2020–21. However, the rapid growth in wealth among older individuals means this number is set to rise to over 7% by 2032–33.
The number of people affected by inheritance tax will be still larger. One in eight people (12%) will have inheritance tax due either on their death or their partner’s death by 2032–33.
This varies dramatically between the different regions of the country: in London, around 23% of people (or their surviving spouse or civil partner) will pay inheritance tax, almost twice the national average and five times higher than in the North East. |
The current level of £325,000 basic was a substantial rise from the previous limit, the rise happening some time in the last ten years or so. I'm pretty well certain (there's nothing guaranteed in this life) that the £325k level will be raised again in the not too distant future. If it is then the 2032-2033 prediction you've made won't happen.
You're talking about people who will be affected as things stand now. My question was about the 95% or so who won't be affected. I don't understand why it's popular with them. | | | |
| Inheritance Tax on 10:02 - Nov 22 with 888 views | majorraglan |
| Inheritance Tax on 09:50 - Nov 22 by johnlangy |
The current level of £325,000 basic was a substantial rise from the previous limit, the rise happening some time in the last ten years or so. I'm pretty well certain (there's nothing guaranteed in this life) that the £325k level will be raised again in the not too distant future. If it is then the 2032-2033 prediction you've made won't happen.
You're talking about people who will be affected as things stand now. My question was about the 95% or so who won't be affected. I don't understand why it's popular with them. |
The level has not raised in the last 13/14 years.
The £325,000 figure was achieved through rises in the limit (most likely due to inflation) up until 2009, after that the current government and its Conservative predecessors under Cameron, May, Boris and Truss froze the limit at its current level and it’s not changed since 2010. If the limit had been linked to inflation it would now be at £515k.
Maybe the people who won’t be affected are being influenced by the pr in certain papers. [Post edited 22 Nov 2023 10:04]
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| Inheritance Tax on 10:20 - Nov 22 with 876 views | JACKMANANDBOY |
| Inheritance Tax on 09:50 - Nov 22 by johnlangy |
The current level of £325,000 basic was a substantial rise from the previous limit, the rise happening some time in the last ten years or so. I'm pretty well certain (there's nothing guaranteed in this life) that the £325k level will be raised again in the not too distant future. If it is then the 2032-2033 prediction you've made won't happen.
You're talking about people who will be affected as things stand now. My question was about the 95% or so who won't be affected. I don't understand why it's popular with them. |
It is not 95 percent who are not affected, although the tax is calculated on the value of the estate, in effect the beneficiaries
'pay the tax '. In my will there are three beneficiaries this includes two families so in my case 9 people 'benefit directly'.
So apply this rough rule across the board and 4 percent of estates means in practice a large number of people benefitting every year. My extended family is small you can imagine in a larger family 20 or more benefitting directly.
The 4 percent figure is misleading in this respect. |  |
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| Inheritance Tax on 11:43 - Nov 22 with 839 views | gadgetuk |
I don't support the removal of IHT, but I do think the way it is applied needs to change with a sliding scale based on the value of the inheritance. In London, you will be hard pressed to find a house going for less than 500k which means everyone has to pay IHT. | | | |
| Inheritance Tax on 12:00 - Nov 22 with 826 views | Whiterockin |
| Inheritance Tax on 11:43 - Nov 22 by gadgetuk |
I don't support the removal of IHT, but I do think the way it is applied needs to change with a sliding scale based on the value of the inheritance. In London, you will be hard pressed to find a house going for less than 500k which means everyone has to pay IHT. |
It really needs to be tweaked and exclusions put in. So many think it won't affect them, but it could. Imagine being a widow living in a £275K house, got a car and the normal material things of life and a little savings. You retire with anything over a £50K pension pot and pass away, your next of kin pay IHT. Plus anything you gave away in the previous 7 years (bank of mum and dad) is taxed, even if its been spent. Think about it. It may currently affect 4% directly, but indirectly the numbers are huge and growing. | | | |
| Inheritance Tax on 21:27 - Nov 22 with 774 views | majorraglan |
Surprised no body’s mentioned the budget.
Well, the Inheritance Tax changes didn’t take place as predicted, we got a cut in NI and we also had the predicted freeze in the higher rate tax threshold. Winners and losers as always. Lots of complaints in the comments section of the Daily Mail about spin though. Anybody approaching £50,000 whether that’s via salary, or pension and salary combo could find themselves worse off.
https://www.dailymail.co.uk/news/article-12779599/How-does-Autumn-Statement-affe | | | |
| Inheritance Tax on 21:33 - Nov 22 with 767 views | Gwyn737 |
| Inheritance Tax on 21:27 - Nov 22 by majorraglan |
Surprised no body’s mentioned the budget.
Well, the Inheritance Tax changes didn’t take place as predicted, we got a cut in NI and we also had the predicted freeze in the higher rate tax threshold. Winners and losers as always. Lots of complaints in the comments section of the Daily Mail about spin though. Anybody approaching £50,000 whether that’s via salary, or pension and salary combo could find themselves worse off.
https://www.dailymail.co.uk/news/article-12779599/How-does-Autumn-Statement-affe |
It’s so blummin’ complicated it’s hard to know where you stand.
Things that seem bad now may have benefits down the road and good news often means hardship to come.
No matter who is in government it’s going to be hard for a good while longer. | | | |
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