Inheritance Tax

[theclaud]

I'm still allowed to give my child a KitKat. No commissars have stopped me so far. Where's the threshold that triggers moral outrage......and why?

A finger of fudge is just enough. Four fingers of KitKat is bourgeois entitlement.

 

[theclaud]

stems from a time when £500k was a lot of money

It still is.

 

[theclaud]

Dan Neidle’s take.
https://www.taxpolicy.org.uk/2023/06/03/iht_terrible/

Neidle: "The terrible argument that won’t die: “inheritance tax is double taxation."

Cyclechat Boomers:

 

[newfhouse]

I'm still allowed to give my child a KitKat. No commissars have stopped me so far. Where's the threshold that triggers moral outrage......and why?

This triggers my outrage. I guess we're all reactionaries at times.

 

[AuroraSaab]

It is but in the 1700's $500k was the equivalent of $16 million dollars (can't find the £ calculation but can't imagine it would be dissimilar). I think £500k is still a fair amount to tax, even though it catches people who have lived pretty modestly but happen to live in an area of big house inflation. The difference is that some people will take steps to avoid inheritance tax, others won't realise.

 

[Ian H]

It is but in the 1700's $500k was the equivalent of $16 million dollars (can't find the £ calculation but can't imagine it would be dissimilar). I think £500k is still a fair amount to tax, even though it catches people who have lived pretty modestly but happen to live in an area of big house inflation. The difference is that some people will take steps to avoid inheritance tax, others won't realise.

To make a case you'd have to reveal what the inheritance tax rate was in 1700.

 

[Unkraut]

To make a case you'd have to reveal what the inheritance tax rate was in 1700.

Any older members here care to help with this?

 

[slowmotion]

This triggers my outrage. I guess we're all reactionaries at times.

View attachment 3982

I completely agree. Eating four fingers simultaneously is against the natural order of things.

 

[icowden]

I think £500k is still a fair amount to tax, even though it catches people who have lived pretty modestly but happen to live in an area of big house inflation.

I disagree. I think it needs to be balanced based on the area of the country. £500k would catch almost all of the houses in my local area. In my little close, almost every 3 bed semi with a small garden is worth more than £500k. These are not mansions. These are 1986 new builds.

 

[the snail]

I disagree. I think it needs to be balanced based on the area of the country. £500k would catch almost all of the houses in my local area. In my little close, almost every 3 bed semi with a small garden is worth more than £500k. These are not mansions. These are 1986 new builds.

Unlikely you would pay any tax on a 500k house, if you inherit from both parents, unless there are a lot of other assets.

 

[Rusty Nails]

Cyclechat Boomers:
View attachment 3981

I wouldn't be seen dead in clothes like that.

Standards, dear girl, standards.

 

[AuroraSaab]

To make a case you'd have to reveal what the inheritance tax rate was in 1700.

Unless it was 99% it would still make the point that it was a tax on the estates of the ultra rich for most of the time it has been around, whereas now it can easily be a tax on the estate of someone in Hackney who bought their council flat. (Which is not an argument for doing away with it, just an observation that it wasn't intended for those people).

 

[AuroraSaab]

I disagree. I think it needs to be balanced based on the area of the country. £500k would catch almost all of the houses in my local area. In my little close, almost every 3 bed semi with a small garden is worth more than £500k. These are not mansions. These are 1986 new builds.

Same here, which is my point about it being a tax on the ultra rich initially and now it catches people who are only asset 'rich', and often cash 'poor'. I can't see them raising the limit to say £600k though as that would benefit the many more super rich as much as the pensioner in their ex-council flat. I'm not sure how you could operate a regional system.

As I say though, many of the very rich aren't paying inheritance tax anyway due to trusts etc. It'll be the folk who aren't aware who will be hit most.

 

[newfhouse]

I disagree. I think it needs to be balanced based on the area of the country. £500k would catch almost all of the houses in my local area. In my little close, almost every 3 bed semi with a small garden is worth more than £500k. These are not mansions. These are 1986 new builds.

That's not how tax usually works.

Why do you want special treatment for living in an affluent area? You can leave your kids half a million pounds tax free and you think they're hard done by?

Make it make sense.

 

[Rusty Nails]

This was in around 1984ish. They didn't inherit that much money, just the house. Which was worth more than the inheritance tax threshold.
Zoopla says the house last sold in November 2020 for £550k. The current estimated price is £865k to £1.3m.

To be fair the owner who purchased it for £550k turned it from a 4 bed 3 reception detached house to a 9 bedroom B&B.
https://www.tripadvisor.co.uk/Hotel...ed_and_Breakfast-Widnes_Cheshire_England.html

Were the new owners' names Tom and Maria?