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To think my children have no right to inherit £1m free of tax?

(200 Posts)
Gasp0deTheW0nderD0g Sat 04-Jul-15 07:55:20

My husband and I had the good luck to get onto the property ladder in London in the 80s when people on ordinary incomes could quite easily buy a family home. By sheer chance our fairly ordinary family home is now worth an eye-watering amount of money. No way could we buy it ourselves now. Our children will definitely not be able to buy their own homes unless they get jobs on far, far above the average salary and/or we re-mortgage or act as guarantors.

The BBC says that George Osborne is about to announce that inheritance tax on family homes worth up to £1m is going to be abolished. Why? Well, obviously to win votes - but from a moral perspective, why should my children inherit £1m and pay no tax on it?

Tooooooohot Sat 04-Jul-15 07:56:45

Because you have already paid tax on that money .....???

Angeale Sat 04-Jul-15 07:57:35

YABU.

Tax has already been paid on the property.

Teabagbeforemilk Sat 04-Jul-15 07:58:35

Then sell it and spend the money if you have a problem with it

Angeale Sat 04-Jul-15 07:59:40

Also assuming you have two children it will be split down the middle

32percentcharged Sat 04-Jul-15 07:59:43

Sell it and donate some to charity if it makes you feel better then

IKnowIAmButWhatAreYou Sat 04-Jul-15 07:59:59

It's the product of hard work and tax has been paid on it multiple times!

I personally hate being taxed again & again on the same money, so any chance to not have to pay is welcome....

TinyManticore Sat 04-Jul-15 08:00:10

You can't possibly be surprised that Tories are looking after people with money, and screwing over anyone who doesn't? They're safeguarding their future voters.

googoodolly Sat 04-Jul-15 08:00:25

Because you've already paid tax on it. Why should it be taxed twice?

IKnowIAmButWhatAreYou Sat 04-Jul-15 08:01:10

why should my children inherit £1m and pay no tax on it?

Also - you're not obliged to leave it to them. Leave it to your local cats home if you're that averse to the idea......

ASorcererIsAWizardSquared Sat 04-Jul-15 08:03:00

They might not, you could end up having to sell it to pay for your care in your old age because I doubt your kids will if you dislike them so much as to begrudge them their inheritance!

maxxytoe Sat 04-Jul-15 08:03:33

Just go with it and be happy

FarFromAnyRoad Sat 04-Jul-15 08:03:44

What IKnow said. Have you checked with the children? I'm sure they won't want the money or the house. Fuck that. Cat's home it is then!

Award yourself a big shiny 'Am I Not Marvellous' Badge straight away!

32percentcharged Sat 04-Jul-15 08:04:10

They could probably contest it KnowIAm, but OP could cettainly include charities in her will to avoid having to leave all her assets to her child

NewsreaderChic Sat 04-Jul-15 08:04:38

I don't know, I'm conflicted. My DM's house is worth around £1m which my sister and I will inherit. We spent most of our childhood and teens extremely poor after my parents divorce while my DM fought tooth and nail to keep what was a very ordinary house over our heads. The three of us suffered for years, think hiding from bailiffs, never having new anything and often going hungry. It makes me sick that we'd have to pay such a huge amount to the tax Man now. If DM wants to sell up and live a champagne lifestyle for her last years I'd say she deserves it.

SlaggyIsland Sat 04-Jul-15 08:04:58

OP I see your point. Tax hasn't been paid on most of the money if that's just been earned through the house value rising.

Pagwatch Sat 04-Jul-15 08:06:34

Then don'T leave it to them.

My house is worth a bit and we paid a fucking shed load of tax on the money earnt to pay for it. If I leave it to my disabled son to pay for his care it will be taxed again.

I pay lots of tax. Plus some. I don't mind. It's the price of a fairer society.
But you are not obliged to profit from the housing prices boom.

QuiteLikely5 Sat 04-Jul-15 08:06:39

You can donate your house to the treasury if you like or a proportion of it upon you death if you really want to.

Also your post sounds a tad spiteful/resentful to me.

PausingFlatly Sat 04-Jul-15 08:06:40

It's insane.

And no, tax hasn't been paid on the rocketing price of the house since you bought it.

In fact, given you bought in the 80s and had MIRAS tax relief until 2000, you haven't paid tax on all money you bought it with, either.

George is planning to fund this by taking pension tax-relief from earners, and handing it to inheritors. So, not really in the groove of "rewarding hard work" the Tories perpetually parrot.

PausingFlatly Sat 04-Jul-15 08:08:41

Still, that's Austerity™ for you. Have to tighten your belt, and all that.

Itsthiwooluff Sat 04-Jul-15 08:09:14

Please can someone explain how it has already been taxed? Say, for example, I buy a house when it is worth 100k. That is the amount that my mortgage is for, and I pay that out of income after tax, so I get that 100k has already been taxed.

But if the value increases to 500k, how has the 400k increase already been taxed? I wouldn't pay capital gains on it because it is my main house, I think.

32percentcharged Sat 04-Jul-15 08:11:21

It's being funded by limiting tax relief on pensions for earners over 150k, so hardly taking from the poor. It's far more likely to help the younger generation who cannot afford property.
But hey, don't let facts get in the way of a bit of Tory bashing

marrqkashg Sat 04-Jul-15 08:11:29

Yabu !

I also bought in London in the 80s in Islington and my house is worth a lot,but I worked damn hard for it. Sometimes three jobs and I've earnt it all. I'm well over the 1 million limit so I will still have to take measures to avoid it.

merrymouse Sat 04-Jul-15 08:11:44

One of the odd things about this increased hit nil band is that it only applies to houses, therefore encouraging older people in big houses to stay put because exchanging a house for cash might lead to a bigger iht bill.

You would think you would want to reward people for downsizing and freeing up family houses.

Ladyflip Sat 04-Jul-15 08:12:16

Perhaps you will get old, your children will sling you in a nursing home, sell your house to fund your care, and then they will have to pay IHt on the cash that is left rather than getting the property free of IHT.

That doesn't seem fair to me, as it is favouring those who don't need to use their assets to care for themselves.

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