It is far from semantics. The inheritors receive nothing until the inheritance tax is paid. The amount of tax is wholly dependant on the financial position of the deceased and in no way upon the financial position of the inheritor.
Inheritance Tax
- Thread starter icowden
- Start date
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It is far from semantics. The inheritors receive nothing until the inheritance tax is paid. The amount of tax is wholly dependant on the financial position of the deceased and in no way upon the financial position of the inheritor.
newfhouse
pleb
Two sides of the same coin.
What’s your view on abolishing, reforming or retaining an inheritance tax?
Rusty Nails
Country Member
I suspect the views on inheritance tax will vary based upon either the amount the individual potentially has to leave to their beneficiaries or the amount potential beneficiaries anticipate being left.
If people feel strongly about it it is possible for beneficiaries to sign a legal deed of variation if they think the amount they have been left is too much or even donate it to a charity of their choice.
OP
OP
icowden
Squire
The issue that I have is where the inheritors are rendered homeless due to the inheritance tax. This happened to my aunties. My uncle died leaving everything to his wife. She died within 3 weeks of his death (many say of a broken heart). This meant that his property (which was large) instead of being inherited by his daughters had to be sold to pay the inheritance tax, and they had to find temporary lodging before they could buy somewhere with the inheritance. They lost the house that they grew up in.
Ian H
Legendary Member
Whilst it's obviously tragic that they had to move from their ancestral home, your account doesn't fit most definitions of homelessness.
Ian H
Legendary Member
Perhaps we should do swapsies.
BoldonLad
Old man on a bike. Not a member of a clique.
- Location
- South Tyneside
Isn't this the mechanism via which National Trust "acquired" many of it's properties?
slowmotion
Active Member
HMRC gets a total of about £530 billion a year from all taxes. Inheritance Tax contributes about £6.5 billion a year. It's not a very large percentage. Of course some will say that it's not enough, and others that it wouldn't be a big deal if it didn't exist. Take your choice.
BoldonLad
Old man on a bike. Not a member of a clique.
- Location
- South Tyneside
Given the constant cries of "the rich are getting richer, the poor are getting poorer", it would appear, that after 200+ years, it is not working?
newfhouse
pleb
Dan Neidle’s take.
https://www.taxpolicy.org.uk/2023/06/03/iht_terrible/
https://www.taxpolicy.org.uk/2023/06/03/iht_terrible/
BoldonLad
Old man on a bike. Not a member of a clique.
- Location
- South Tyneside
It rather depends on your view regarding the word "earn".
Does one have to do manual labour to "earn", or, does "thinking", "delegating", "planning" and other "white collar" activities qualify a person as having "earned"?
Is it possible to be a (say) professional gambler, or, investor, and still be said to have "earned" one's money?
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theclaud
Reading around the chip
LOL
OP
OP
icowden
Squire
Unfortunately he misses one basic thing.
If I have done a piece of work and been paid £100, I pay my tax and take home £80.
If I then choose to buy £10 of petrol or a £50 luxury item which includes VAT, any taxes are on that transaction and included in the price.
It's my choice to spend money on something of which part of the price includes a payment to the Government.
Inheritance Tax is not paid out of choice, it is mandated by the Government and represents taking money which was already taxed. Yes, there is capital gain in the form of house price rises which has not been taxed, but that is largely the fault of the Government who run a system in which one of the best investments for money is buying a house.
slowmotion
Active Member
That's quite good! Thanks.
