Inheritance Tax

[BoldonLad]

Nonsense. If I own property “worth” over half a million pounds I can either sell it for cash or borrow using it as collateral. That makes me wealthy.

In the real world selling or pawning possessions to make ends meet is a sometimes unfortunate part of daily life.

True. Just as not everyone having exactly equal income, possessions, skills, abilities is an unfortunate part of daily life, unless that is we are to introduce a system where everyone gets the same wage, lives in an identical house, rides identical bicycles, etc etc

There is a definite tinge of green in this thread, and, I mean green, not Green.

 

[Rusty Nails]

I'm not 'looking for nits to pick' - I'm merely perpetually astonished at the inability of people with considerable wealth to exhibit any self-awareness about it. If I've got a house worth £600K (meaning, in this context, that a buyer will part with that amount for it), then I've got £600K, as Aurora has subsequently acknowledged when she says her friend sold the house 'to free up some cash'.

I'm astonished at many things that don't agree with my understanding of things as well.

People's circumstances change and many people live in a house thinking of it as a home they may be attached to rather than an asset. In this case the woman, like any good citizen of our capitalist society, belatedly came to the understanding that her life could be more comfortable for her by realising those assets.

Nothing to do with inheritance and nothing to see here, move on.

 

[Rusty Nails]

Money can refer to realisable assets, unless you're nitpicking.

I see your nitpicking and raise you one nit.

 

[newfhouse]

True. Just as not everyone having exactly equal income, possessions, skills, abilities is an unfortunate part of daily life, unless that is we are to introduce a system where everyone gets the same wage, lives in an identical house, rides identical bicycles, etc etc

I have no idea what this means.

There is a definite tinge of green in this thread, and, I mean green, not Green.

And I can only guess at this. Can you expand a little? All I see at the moment is whiny entitlement, not envy.

 

[theclaud]

It's not wealth if you cannot spend it. If it is your home and you live in it, it doesn't matter whether it is worth £1 or £1 million.

LOL. I used to have habitual freeloader flatmate who got away with it a lot, partly because he was funny, but mostly because talked as if he was broke. Turns out he had £100K in a savings account. From an inheritance. He didn't see that as wealth or money either.

 

[icowden]

True. Just as not everyone having exactly equal income, possessions, skills, abilities is an unfortunate part of daily life, unless that is we are to introduce a system where everyone gets the same wage, lives in an identical house, rides identical bicycles, etc etc

It is. And where a home is concerned people tend to like to stay where they have friends, family, school etc.
In my view inheritance tax unfairly penalises those who happen to live in an area which has become more affluent because of house price rises.

The people in my street are not millionaire footballers, they are teachers, plumbers, builders, IT people, retirees, tutors, sports coaches etc.
The wealthy people live in Ashley Park where the average house price is 3 million rather than 550k. The super wealthy live in Burwood Park or St George's Hill where the properties range from 5 million to 20 million plus.

 

[theclaud]

I'm astonished at many things that don't agree with my understanding of things as well.

People's circumstances change and many people live in a house thinking of it as a home they may be attached to rather than an asset. In this case the woman, like any good citizen of our capitalist society, belatedly came to the understanding that her life could be more comfortable for her by realising those assets.

Nothing to do with inheritance and nothing to see here, move on.

It's basic stuff, Rusty. If I have a £600K house, I have £600K. I could leave it where it is and live in it, and spend my income on something other than rent. I could sell it and have a smaller house or a house in another area, PLUS a wad of say £300K to play with, and I still wouldn't need to pay rent. I could sell it and not buy another house, go credit card touring on a very nice bicycle until it ran out, and then start over or die trying. I'm not making any judgement about what she did or does, I'm simply asking people to stop pretending that property is not wealth.

 

[Rusty Nails]

There is a definite tinge of green in this thread, and, I mean green, not Green.

I am not sure about the green, but there is a strong whiff of sanctimony from people who will either leave their assets to family or happily accept the assets left to them.

I see nothing wrong with the principle of inheritance tax, and readily accept the levels the governments set it at. At the same time I hope that I have something to leave my kids, but in the meantime will do nothing to avoid the levels and thresholds set. From experience, I know the state will not look after us adequately if (and I hope it doesn't happen for many years, if ever) either my wife or I need to go into a care/nursing home at some time in the future and the 'wealth' I have will be needed and taken by the state. The kids can have anything left over.

 

[Rusty Nails]

It's basic stuff, Rusty. If I have a £600K house, I have £600K. I could leave it where it is and live in it, and spend my income on something other than rent. I could sell it and have a smaller house or a house in another area, PLUS a wad of say £300K to play with, and I still wouldn't need to pay rent. I could sell it and not buy another house, go credit card touring on a very nice bicycle until it ran out, and then start over or die trying. I'm not making any judgement about what she did or does, I'm simply asking people to stop pretending that property is not wealth.

You'll get no argument from me about property not being wealth, nor about people who are lucky enough to have a bit more of that wealth than others moaning that they are treated unfavourably.

I'm with Benjamin Franklin on this and just get on with life accordingly.

 

[theclaud]

You'll get no argument from me about property not being wealth

So why take issue with me in the first place, if you agreed all along?

 

[icowden]

It's basic stuff, Rusty. If I have a £600K house, I have £600K.

No you don't. You only have a £660k house at that point in time. Next week it could be a £700k house or a £400k house, especially if Liz Truss gets back into power.

if you are in Aberdeen that house might be a castle. If you are in Tooting it might be a studio flat. It's no use saying that if you are tight for money you can sell up and move to Aberdeen if your job, friends and family are in Tooting.

 

[theclaud]

No you don't. You only have a £660k house at that point in time. Next week it could be a £700k house or a £400k house, especially if Liz Truss gets back into power.

if you are in Aberdeen that house might be a castle. If you are in Tooting it might be a studio flat. It's no use saying that if you are tight for money you can sell up and move to Aberdeen if your job, friends and family are in Tooting.

Have you been taking reductio ad absurdum lessons fron slowmo?

 

[winjim]

It seems like we're basically all agreeing that house prices are stupid, right? Is that basically the crux of the matter?

 

[theclaud]

It seems like we're basically all agreeing that house prices are stupid, right? Is that basically the crux of the matter?

Indeed. And also that it's fundamentally important that people have houses to live in.

 

[Rusty Nails]

So why take issue with me in the first place, if you agreed all along?

Nit picking.