BRFR Cake Stop 'breaking news' miscellany

[Pblakeney]

Do you have to move out of your house to avoid it? Bear in mind there's a £500k exemption that doesn't apply to most people in most of the country, but disproportionately captures most of some areas, and fairly modest homes.

No, I do not have to move. This is because I factored in the practicalities of the house and location plus value while doing my financial planning in my early 50s.

 

[Pblakeney]

Did selling off Council Houses reduce the number of houses available?

No, but it did reduce the number of cheap rental properties.

 

[Pblakeney]

I like the use of the word "planning", does it apply to everyone strata of society, do you think that everyone "plans"?

If you are fortunate enough to be concerned about IHT then you should be planning. Yes.

 

[Pblakeney]

Well - only if they want to sell their house and move elsewhere. If you want to live in your house in the area where you work and know people, it doesn't matter whether it's worth £10 or £10 million if that's the average house price. The Terraced 3 bed in Fulham that my inlaws purchased in the 1960s is now worth £1.2 million. If my wife hadn't met me and instead was still living and renting in Fulham, rather than move into her parents house she would have to sell it to pay the IHT. Someone in exactly the same situation in Sheffield has no IHT to pay.

Flip side of that argument is that even after IHT the person in Fulham still benefits more than the person in Sheffield.
Focus on what is received rather than paper worth.

 

[briantrumpet]

Well - only if they want to sell their house and move elsewhere. If you want to live in your house in the area where you work and know people, it doesn't matter whether it's worth £10 or £10 million if that's the average house price. The Terraced 3 bed in Fulham that my inlaws purchased in the 1960s is now worth £1.2 million. If my wife hadn't met me and instead was still living and renting in Fulham, rather than move into her parents house she would have to sell it to pay the IHT. Someone in exactly the same situation in Sheffield has no IHT to pay.

I'd still rather be inheriting from an estate on which IHT is due than from one that isn't, for the obvious reason.

 

[Psamathe]

Well - only if they want to sell their house and move elsewhere. If you want to live in your house in the area where you work and know people, it doesn't matter whether it's worth £10 or £10 million if that's the average house price. The Terraced 3 bed in Fulham that my inlaws purchased in the 1960s is now worth £1.2 million. If my wife hadn't met me and instead was still living and renting in Fulham, rather than move into her parents house she would have to sell it to pay the IHT. Someone in exactly the same situation in Sheffield has no IHT to pay.

Those with estates subject to IHT are dead so don't really want to live in their houses, probably moving to churchyard or crematorium.

e.g. (no measures to avoid IHT) two people each with £2m. Person in Scotland has £300k castle so has £1.7m in the bank other lives in London with a £1.3m semi and thus £700k in the bank. Both people die. Person living in London actually pays less IHT that the person living in Scotland - so person in London gains and person in Scotland penalised.

If a beneficiarry choses to take ownership of the property then they are buying it (ie deeds are being transferred to their name). HMRC is only interested in the value of estate incl. assets which include art works, car, antiques, house, etc. because that is what the "estate" is.

 

[First Aspect]

Those with estates subject to IHT are dead so don't really want to live in their houses, probably moving to churchyard or crematorium.

e.g. (no measures to avoid IHT) two people each with £2m. Person in Scotland has £300k castle so has £1.7m in the bank other lives in London with a £1.3m semi and thus £700k in the bank. Both people die. Person living in London actually pays less IHT that the person living in Scotland - so person in London gains and person in Scotland penalised.

If a beneficiarry choses to take ownership of the property then they are buying it (ie deeds are being transferred to their name). HMRC is only interested in the value of estate incl. assets which include art works, car, antiques, house, etc. because that is what the "estate" is.

Who is the person in Scotland you are talking about? I would happily take that castle.off them for £300k.

 

[Psamathe]

Who is the person in Scotland you are talking about? I would happily take that castle.off them for £300k.

Everybody makes choices. I'd probably choose the same. But in practice person in Scotland would have high running and maintenance costs on their castle probably with a lot of renovation costs needed, etc. But then I don't like cities but others do. Choices.

 

[First Aspect]

Everybody makes choices. I'd probably choose the same. But in practice person in Scotland would have high running and maintenance costs on their castle probably with a lot of renovation costs needed, etc. But then I don't like cities but others do. Choices.

There are fewer choices for most people then we think. For a lot of people the choice to not live in a city is to choose one or more of lower salary or long and expensive commute.