Inheritance Tax

[theclaud]

Nit picking.

Fairy Nuff! If slightly annoying.

 

[newfhouse]

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.

This describes my circumstances too. When we die our heirs will have whatever we haven't spent, minus tax.

 

[AuroraSaab]

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

Yes. It has made some people who live in very ordinary properties very wealthy in terms of assets. These are not the people inheritance tax was aimed at, but that's where we are at.

 

[BoldonLad]

I have no idea what this means.


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

Sorry to disappoint, but, as you may have observed, I live in the impoverished North, land of four bedroom detached houses for £200K. I don't think the value of our home is going to enrich the exchequer, so, no "entitlement" here.

 

[newfhouse]

Yes. It has made some people who live in very ordinary properties very wealthy in terms of assets. These are not the people inheritance tax was aimed at, but that's where we are at.

Wealthy people?

 

[Mr Celine]

And where a home is concerned people tend to like to stay where they have friends, family, school etc.

Perhaps you could explain that to Norman Tebbit.

 

[winjim]

Wealthy people?

But they shouldn't be wealthy. That's my point and I think is the thrust of a lot of arguments being made on this thread. There's a coupling of wealth and housing, driven by house price inflation. And while TC is correct in that

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

we also have to consider that people have an emotional connection to their houses. The difference between a house and a home if you will. I certainly appreciate the independence that owning a home gives me compared to the utter catastrophe that is the rental sector, even if I am now effectively massively in debt to the mortgage provider. So IMO there's an issue of trying to uncouple wealth from home ownership, but also providing the stability and emotional comfort people derive from having a stable home.

I think behind the bickering, a lot of us in this thread are coming at the issue with similar point of view.

 

[Rusty Nails]

Fairy Nuff! If slightly annoying.

Sorry.

Nit picking is the lifeblood of forums like this.

I find all this guff about 'greed and 'entitlement' and leaving people houses contributing to house price inflation is all more divisive stuff deflecting from the real issue, which is that while the population is growing, the government has done next to nothing to keep up with that demand by building new houses or encouraging them to be built.

 

[newfhouse]

But they shouldn't be wealthy. That's my point and I think is the thrust of a lot of arguments being made on this thread. There's a coupling of wealth and housing, driven by house price inflation.

I agree, but under the current system that's what they are.

I certainly appreciate the independence that owning a home gives me compared to the utter catastrophe that is the rental sector, even if I am now effectively massively in debt to the mortgage provider. So IMO there's an issue of trying to uncouple wealth from home ownership, but also providing the stability and emotional comfort people derive from having a stable home.

I agree with this too. What makes me argue the point is that people - sorry @icowden I'm mostly looking at you - twist and turn to justify why they or their offspring shouldn't be taxed.

To give some context, I have just sold my London home and I'm in the process of buying to buy a smaller and cheaper house in the Midlands so that I can retire early.

I wish the system was different, that a similar house had roughly the same value anywhere in the country, and that retirement didn't have to be funded by convoluted financial arrangements, but we can only swim in the river we're in.

I expect my heirs will pay substantial taxes from what I or my wife leave. That's as it should be.

 

[slowmotion]

Have you been taking reductio ad absurdum lessons fron slowmo?

Steady on old bean!

 

[icowden]

To give some context, I have just sold my London home and I'm in the process of buying to buy a smaller and cheaper house in the Midlands so that I can retire early.
I wish the system was different, that a similar house had roughly the same value anywhere in the country, and that retirement didn't have to be funded by convoluted financial arrangements, but we can only swim in the river we're in.

You see, I'm not sure that when I retire I want to move somewhere where I have no friends or family, don't know the area etc.
I like my local amdram society, the band that I play in, my cycle group etc. I don't want to start again with everything when I reach mid 60s.
I like the area that I live in. My in laws live down the road. My children will probably settle around here etc.

 

[matticus]

If you grew up in the "family home", and are still living there when your parents shuffle off after a good innings, it's probably a house well above the national average size, and you've had an unusual life to stay in it all that time.

Parents should focus on raising kids in a supportive environment, equipping them with a moral framework and strong life skills, then kick them out of the nest to fly somewhere new. This is a flawed, populist argument - rather like defending cheap motoring to help "hard-working families".

 

[Cirrus]

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.

Get in your bike, Norman Tebbit wasn’t it who coined the phase.

 

[icowden]

Parents should focus on raising kids in a supportive environment, equipping them with a moral framework and strong life skills, then kick them out of the nest to fly somewhere new.

You do know that it is almost impossible now for kids to get on to the property ladder?

 

[qigong chimp]

The money's mine.