The Conservative Party

[Nethermoor]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

 

[Vic]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

Yeah, they leave the rich with way too much inherited wealth.

 

[BeerIsTheBest]

It’s all absolute bollocks and expect nothing else as the GE looms.
4% of people who die pay IT. it added £7b to gvmt coffers in 22/23.
Changes to tax on Capital Gains and changes to taxation rules on pension transfer to dependants on death, and to the pension Lifetime Allowance will compensate.

The proposed pension and capital gains taxes have been slipped in without any fanfare and are more unfair to more people who are not in the richest classes.

Work it out!

 

[Nethermoor]

It’s all absolute bollocks and expect nothing else as the GE looms.
4% of people who die pay IT. it added £7b to gvmt coffers in 22/23.
Changes to tax on Capital Gains and changes to taxation rules on pension transfer to dependants on death, and to the pension Lifetime Allowance will compensate.

The proposed pension and capital gains taxes have been slipped in without any fanfare and are more unfair to more people who are not in the richest classes.

Work it out!

You pay 40% on anything inherited over £325k. So how you getting 4%?

The majority of folk have a house worth more than that....

I'm not against inheritance tax, but it should be over a higher amount.

 

[west didsblue]

You pay 40% on anything inherited over £325k. So how you getting 4%?

The majority of folk have a house worth more than that....

I'm not against inheritance tax, but it should be over a higher amount.

There’s an additional nil rate band for primary residence of £175,000 and if it’s a couple where the second person has just died the first persons allowance is added, so in most cases it’s actually £825,000 before any IHT is paid. And that was in 2021 and the nil rate band is supposed to be linked to CPI so it should be more than that.

 

[BeerIsTheBest]

You pay 40% on anything inherited over £325k. So how you getting 4%?

The majority of folk have a house worth more than that....

I'm not against inheritance tax, but it should be over a higher amount.

Morning mate

From Gov.UK stats
‘The number of people who paid inheritance tax over the past year has soared by 24%, driven by rising property prices and a frozen tax thresholds. The latest government data shows that 41,000 people were liable to inheritance tax in 2022/23, up from 33,000 the previous year and the highest level in 20 years.’

If the gvmt were being fair and reasonable they would simply raise the £ threshold before the tax became effective. Why is this not a fair solution - probably because doing away with the tax completely is a great headline. Which class of person is this really helping?

Punishing everyone who has steadily built a pension and then dies before age 75 and potentially changing the rules on Capital Gains such that any small investor who has saved gets clattered if their investments do well is patently unfair in my book.

 

[BeerIsTheBest]

Morning mate

From Gov.UK stats
‘The number of people who paid inheritance tax over the past year has soared by 24%, driven by rising property prices and a frozen tax thresholds. The latest government data shows that 41,000 people were liable to inheritance tax in 2022/23, up from 33,000 the previous year and the highest level in 20 years.’

If the gvmt were being fair and reasonable they would simply raise the £ threshold before the tax became effective. Why is this not a fair solution - probably because doing away with the tax completely is a great headline. Which class of person is this really helping?

Punishing everyone who has steadily built a pension and then dies before age 75 and potentially changing the rules on Capital Gains such that any small investor who has saved gets clattered if their investments do well is patently unfair in my book.

Sorry should have added the % to answer your Q
tax?

The key points from this year's publication are: In the tax year 2020 to 2021, 3.73% of UK deaths resulted in an Inheritance Tax ( IHT ) charge, decreasing by 0.03 percentage points since the tax year 2019 to 2020.26 Jul 2023

 

[bluethrunthru]

"you are talking historical figures" says the Tory.............. by its very nature IHT is historical - you can't hit people with it when they reach the age of 30 can you ? - another winner from Rishi as he flails about ahead of his conference

 

[BobKowalski]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

Raising the threshold or even tweaking the rates is fine, but the tax does incentivise those with lots of money to seek out ways to minimise IT - for example investing in the Alternative Investments Market which helps fund small to medium sized UK companies and generate growth. Shares held in AIM listed companies are exempt from IT.

Immense wealth stagnating in the hands of a few and doing nothing is not healthy. Freeing up this money or incentivising people to invest some of their wealth in the economy is sensible.

 

[Nethermoor]

There’s an additional nil rate band for primary residence of £175,000 and if it’s a couple where the second person has just died the first persons allowance is added, so in most cases it’s actually £825,000 before any IHT is paid. And that was in 2021 and the nil rate band is supposed to be linked to CPI so it should be more than that.

Yeh we're going through this with my Grandads estate.

He was a head Gardener in the NHS for 50 years and has a nice big house passed to my dad and auntie. They thought they might have to pay 40% on nearly 325k which would be a hell of a lot of money and unfair on the family who have worked hard for themselves.
Luckily as my Grandma died a few years back the threshold is increased as you mention.

I think raising the threshold in general is the best idea. 325k is a tiny amount these days. Should be a million or incremented. Say 5% over 500k until 1million then it's 40% or something.

 

[Nethermoor]

Raising the threshold or even tweaking the rates is fine, but the tax does incentivise those with lots of money to seek out ways to minimise IT - for example investing in the Alternative Investments Market which helps fund small to medium sized UK companies and generate growth. Shares held in AIM listed companies are exempt from IT.

Immense wealth stagnating in the hands of a few and doing nothing is not healthy. Freeing up this money or incentivising people to invest some of their wealth in the economy is sensible.

Yeh. I've just posted above my Grandad died a few months back and his house is worth £700k and with his savings and stuff he has about 800k. My Dad and Aunt thought they would have to pay tax on anything over 325 but the solicitors have told them due to my Gran dying a few years earlier the threshold is higher.

Imagine working yourself to the bone then dying and the government taking yet more tax.

 

[Nethermoor]

Sorry should have added the % to answer your Q
tax?

The key points from this year's publication are: In the tax year 2020 to 2021, 3.73% of UK deaths resulted in an Inheritance Tax ( IHT ) charge, decreasing by 0.03 percentage points since the tax year 2019 to 2020.26 Jul 2023

Thanks for explaining. Makes more snese now.

 

[BeerIsTheBest]

Raising the threshold or even tweaking the rates is fine, but the tax does incentivise those with lots of money to seek out ways to minimise IT - for example investing in the Alternative Investments Market which helps fund small to medium sized UK companies and generate growth. Shares held in AIM listed companies are exempt from IT.

Immense wealth stagnating in the hands of a few and doing nothing is not healthy. Freeing up this money or incentivising people to invest some of their wealth in the economy is sensible.

Totally agree but why not just raise the IHT threshold?

The proposals to decrease the gains made from investments by folk like you describe via additional tax on Capital Gains was slipped in just before a recess this year. It’s had no big publicity or gvmt headlines for obvious reasons.

Similarly the gvmt proposal to remove the right for hard workers who’ve saved into a pension to pass all their pension onto a dependant tax free in the event that they die before age 75 has had no publicity.

Its a game and the IHT is just a headline. Who is this going to benefit - the c4% with the most assets.

Just be fair- raise the threshold on IHT to a £million or whatever

 

[TinFoilHat]

Tory Policy HQ:
"Let's float the idea of getting rid of inheritance tax to gauge reaction."


Few days later:
"Well that's a bit of shitshow. Put out were gonna put the army on the streets to help the police thus showing we must leave the ECHR. Suella will push it pre conference and see how that floats...."

 

[bluethrunthru]

Lol

 

[Vic]

Sorry should have added the % to answer your Q
tax?

The key points from this year's publication are: In the tax year 2020 to 2021, 3.73% of UK deaths resulted in an Inheritance Tax ( IHT ) charge, decreasing by 0.03 percentage points since the tax year 2019 to 2020.26 Jul 2023

So a 24% increase means less than 1% more of the population is paying Inheritance tax?

 

[BrianW]

The real inheritance tax almost everyone has to pay is the stupid amount of money it costs to obtain probate.

Rather than worrying about the impact on 4% of the population who are very rich people why not focus on something that actually has an impact on almost everyone?

By the way, there is nothing new or socialist about the concept of inheritance tax. Even in The Middle Ages, you had to pay a 'relief' to inherit an estate.

 

[Vic]

Lol

Silly Henry. Didn't want to get his paint wet in the rain.

Better analogy would be Sunak the tank engine passing the "Danger: subsidence" sign and ending up as Sunak the Sunk Engine.

 

[BeerIsTheBest]

So a 24% increase means less than 1% more of the population is paying Inheritance tax?

Vic

I think so and doesn’t that make a compelling argument!!!!
IHT (and as earlier poster said Probate and solicitor type costs) are a bastard which I’ve experienced in the last few years.

There were 668,000 deaths in the United Kingdom in 2021 (can’t get more upto date figures and Covid would have skewed numbers upwards)
33,000 people paid IHT in the year 21/22

So 3/4% of folk who die leave an estate covered by IHT seems accurate.

This proposal seems like a big win for the wealthiest and a good headline.

Just raise the threshold before IHT is paid to exclude those dependants who probably need it more and exclude those with most to gain. Why is this too difficult to do?

 

[denislawsbackheel]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

Why?