BRFR Cake Stop 'breaking news' miscellany

[Psamathe]

Re: IHT
To me there are different aspects for and against and I don't know where the balance should be.
As pointed out it's double taxation (ie it's often taxing money that's already been taxed) but that people are getting benefit not from their own efforts sometimes from people they have no real knowledge of.

On balance my current view is that Government needs money to fund public services and where that money comes from is the choice. IHT seems to be targeting those who have a good amount and no longer have use for it which I (currently see) as better than taxing those who are already struggling.

 

[First Aspect]

They could just spend a bit less, you know.

 

[Psamathe]

They could just spend a bit less, you know.

I see that as a separate issue. And a complex issue eg waste less or maybe address issues that cost rather than papering over (treat causes not symptoms), etc.

 

[BoldonLad]

No, it's hated because people like to hold on to as much wealth as they possibly can and usually resent govts "taking my money".

I run a business, I hand over thousands upon thousands of pounds in tax every year, my father handed over a small fortune personally when he was alive and in death. I have no issue with that, I am in no way wealthy but I am fortunate where others are not. As a result it is only fair that I have to pay up, as any wealth I create is not done in isolation.

I suspect that may not be a universal view, depending on the "wealth" of the viewer 😊

 

[BoldonLad]

Yes, as IHT, obviously. I'm not sure what point you're making. It seems a pretty fair tax: the threshold is relatively high, and the inheritors have done nothing to 'earn' it, other than being born and not pissing off their parents enough to be disinherited.

Not according to the farming lobby

 

[BoldonLad]

In my mind there was a key switch in the 90s (IIRC) when houses stopped being homes and became investments.
This along with selling off council houses was the birth of today's housing crisis.
I find it funny that those moaning about IHT are often the ones boasting about the value of their house.

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

 

[icowden]

On balance my current view is that Government needs money to fund public services and where that money comes from is the choice. IHT seems to be targeting those who have a good amount and no longer have use for it which I (currently see) as better than taxing those who are already struggling.

As a counterbalance, many people see it as inherently unfair as it is a blanket tax which applies to the whole country. Thus someone who lives in a small three bed semi in Fulham might have to pay a significant amount of IHT whereas someone living in a Castle in Scotland or a 10 bedroom house in Sheffield or Ilfracombe might pay nothing.

Generally speaking IHT significantly punishes the South East whilst failing to apply to people with many, many millions of pounds.

 

[BoldonLad]

Again, it is the result of choices made earlier on in life. I am fully aware that old age sneaks up on you but people should start to think about these things while in their 50s. Around the same time they are planning retirement for example.

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

 

[BoldonLad]

As a counterbalance, many people see it as inherently unfair as it is a blanket tax which applies to the whole country. Thus someone who lives in a small three bed semi in Fulham might have to pay a significant amount of IHT whereas someone living in a Castle in Scotland or a 10 bedroom house in Sheffield or Ilfracombe might pay nothing.

Generally speaking IHT significantly punishes the South East whilst failing to apply to people with many, many millions of pounds.

every cloud ....

 

[BoldonLad]

Dementia is an epidemic. My own planning, since I have no heirs, will involve avoiding being kept alive by doctors when I don't know who I am. This may involve an alpine holiday, having found good homes for the cats.

That pretty much matches my plan, although, I do have heirs. I am just not sure which one of them will honour their promise to put me on the flight to Dignitas. 😊

 

[First Aspect]

That pretty much matches my plan, although, I do have heirs. I am just not sure which one of them will honour their promise to put me on the flight to Dignitas. 😊

Take up scuba diving. Apparently nitrogen narcosis is a good way to go.

 

[Psamathe]

As a counterbalance, many people see it as inherently unfair as it is a blanket tax which applies to the whole country. Thus someone who lives in a small three bed semi in Fulham might have to pay a significant amount of IHT whereas someone living in a Castle in Scotland or a 10 bedroom house in Sheffield or Ilfracombe might pay nothing.

Generally speaking IHT significantly punishes the South East whilst failing to apply to people with many, many millions of pounds.

Or is it? in that generally with assets we are taking about turning them into cash and that cash being passed to beneficiaries. And that applies to anything of value, art, car, glass vase, house, ...

A few years ago sorting my Mum's house had a "house clearance"/antique company go through the house selecting what was of value and we had to submit details of what they paid as part of the IHT paperwork. If you own a £1.3m 3-bed semi means you have $1.3m to spend on it. A larger £400k castle in Scotland might mean less wealthy estate or more in the bank attracting IHT.

(ignoring that property has special additional allowances under many circumstances)

 

[briantrumpet]

As a counterbalance, many people see it as inherently unfair as it is a blanket tax which applies to the whole country. Thus someone who lives in a small three bed semi in Fulham might have to pay a significant amount of IHT whereas someone living in a Castle in Scotland or a 10 bedroom house in Sheffield or Ilfracombe might pay nothing.

Generally speaking IHT significantly punishes the South East whilst failing to apply to people with many, many millions of pounds.

"Punishes the South East" is doing a lot of heavy lifting here, as those whose house values have gone through the roof haven't exactly been 'punished'.

 

[BoldonLad]

Take up scuba diving. Apparently nitrogen narcosis is a good way to go.

Thank you for the tip 😂

 

[icowden]

"Punishes the South East" is doing a lot of heavy lifting here, as those whose house values have gone through the roof haven't exactly been 'punished'.

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.