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I think inheritance tax is wrong. AIBU?

(524 Posts)
hamstersaremyfriends Mon 09-Dec-19 21:41:59

One of my absolute biggest fears about Labour is their plans to hugely reduce the amount you can inherit before inheritance tax is applied. It's wrong, the absolute majority of people will have paid correct taxes all their lives only for the state to take some more when they die.
I really really believe in being able to pass 'wealth' on (e.g. proceeds fron a parent's house sale being split between siblings if that's what the will says).
I don't believe and can't trust that taxing this more heavily will result in the money collected being ploughed into good causes. It will all go into the same beaurocratic pot.

I don't think many champagne socialists are aware of this massive change on the horizon if Labour control Parliament

Horehound Mon 09-Dec-19 21:44:38

I agree. The money has already been taxed when earned so passing it on to loved ones should be penalty free. You earned it and paid tax on it so it should be forgotten about to the tax man.
It's just punishment to the people

Starlight456 Mon 09-Dec-19 21:45:25

This country does really need change.

I would sooner someone pays inheritance tax than a boy spends hours on a pile of coats on a hospital floor.

goodwinter Mon 09-Dec-19 21:46:10

Inherited wealth is a huge driver of inequality. Personally I think yabu

MaMaMaMySharona Mon 09-Dec-19 21:46:49

Generally I agree, I don’t think inheritance tax should exist within any manifesto. The principle of it is quite disgusting.

I’m someone who would actually stand to receive quite a lot from my DM when she passes away, but I cannot keep this from me voting Labour. The other benefits of their policies hugely outweigh the inheritance tax for me and I think we need them to get any semblance of our society back together.

I have friends who are teachers, nurses, social workers and charity workers who are all telling me the same thing - Tory leadership over the last 9 years has been a massive drain on our resources and the systems can not cope much longer. I’m voting Labour to help them.

My mum is voting Tory over the inheritance tax issue.

BIWI Mon 09-Dec-19 21:47:08

YABU for using the term 'champagne socialists'. I hate the insinuation that just because people are earning well that they can't suddenly have values that support people who don't earn as well.

And you can pass wealth on. You will just have to pay tax on some of it - as it's income for you.

Inherited wealth is a key reason for social inequality in any country.

OhChristmasTreee Mon 09-Dec-19 21:47:23

I think the current system is fine. The majority won’t pay IHT due to transferable nil rate band etc but the rich will and I think that’s ok.

siring1 Mon 09-Dec-19 21:47:27

If you were setting up a tax system from scratch you would invent this.

Thing is, we have it. If we get rid of it other taxes will have to rise - probably income tax.

Batqueen Mon 09-Dec-19 21:48:00

The thing is the dead person isn’t being taxed. You can’t be taxed when you are dead. The people being taxed are the people inheriting something for free. Inheritance is a massive driver of an unequal society.

Both DP and I are due to inherit, (him more than me). You would probably call me oh so disparagingly a champagne socialist. It may be hard to wrap your head around but yes, I am aware, I just think it’s actually the right thing to do.

cuerti Mon 09-Dec-19 21:48:06

But then wealth will never be redistributed and your lot in life will depend on whether or not generations before you were fortunate enough to have wealth to pass on. How is that a move towards a society where there is equality of opportunity?

tabulahrasa Mon 09-Dec-19 21:49:37

I don’t care if I’m taxed after I’m dead, I’m dead... my children didn’t earn it or pay tax on it, so... bash on tbh.

HappyHoolet Mon 09-Dec-19 21:50:00

YANBU. It encourages people to save for old age if they can pass it on.

If people think it’ll go on tax they spend it sooner.

Horehound Mon 09-Dec-19 21:50:05

But it wouldn't go to the NHS starlight. It would be claimed to repay mp's expenses claims and bollocks like that. Things like Boris' bridge that wasted millions. It won't go to anything you would hope it would!

hammeringinmyhead Mon 09-Dec-19 21:50:14

The generation above me in my family is very worked up about this. I am the only child and the one who will benefit, and I don't mind paying tax on it when the time comes!

MsRinky Mon 09-Dec-19 21:50:14

The part of an estate that pushes ordinary people into inheritance tax territory is normally huge increases in the value of property which has neither been earned nor previously taxed. YABU.

KenDodd Mon 09-Dec-19 21:51:16

Actually I think inheritance tax is just about the fairest tax there is. It's taxing the DEAD they don't need their money and I say that as one of the tiny percentage who would be subject to this from both sides.

Fraggling Mon 09-Dec-19 21:51:37

Yabu as it would entrench the divide between rich and poor, which is bad for society as a whole.

doritosdip Mon 09-Dec-19 21:51:42

A lot of my wealth will probably be the result of my house increasing in value. While I paid the mortgage out of taxed income, when my kids inherit the house its value will be greater than the mortgage I took out. So basically I've not been taxed on the price rise.

meredithgrey1 Mon 09-Dec-19 21:52:23

Personally I think YABU. I appreciate that people will view it differently but for me, my parents money is not my money so any that I get from inheritance is a "bonus", it's extra money, and I have no issue with it being taxed. If my parents' financial situation doesn't change there will be inheritance tax to pay on their estate with the inheritance tax as it is, and I'd be happy for it to be much higher.

Iggly Mon 09-Dec-19 21:54:08

Yabu

You can still pass the wealth on. It’s effectively a massive windfall for you if you get a massive inheritance- money for doing fuck all - which is pretty much how the wealthy landowner and royalty perpetuate their wealth.

I got an inheritance - only small - I did nothing to earn it.

minipie Mon 09-Dec-19 21:55:32

I agree with KenDodd. It’s not the dead person who gets taxed, it’s their heirs, who have not earned or paid tax on the money. For the heirs it’s completely unearned.

I would much rather IHT went sky high and income tax was reduced. Much fairer. Even though I stand to inherit a fair bit and I don’t currently earn anything.

I won’t be voting Labour but that’s for other reasons.

AwkwardPaws27 Mon 09-Dec-19 21:56:01

I would far rather have my inheritance reduced and be safe in the knowledge that my parents (and everyone's parents) will have any care they need, medical or social, in order to live in their home for as long as possible.
I'd rather inherit nothing but have the peace of mind that they are cared for and that they do not have to sell their home to pay for care fees whilst they are alive.

questions10000 Mon 09-Dec-19 21:56:05

I think IHT as it currently stands is enough, and the threshold should not be decreased as Labour plan to do, so YANBU in my opinion.

Notabadger Mon 09-Dec-19 21:56:13

Why care so much about a tax 4-5% of people pay?

MadameButterface Mon 09-Dec-19 21:56:27

What’s actually “disgusting” is that the fifth richest country in the world has more foodbanks than macdonalds, a diabetic man dying in a freezing cold flat with no power and an empty belly, a sick four year old laid on a floor for hours waiting for a doctor, victims of domestic violence homeless and sofa surfing, a waiting list of over a year for suicidal/self harming adolescents to get a cahms assessment. Sorry but my tiny violin orchestra is booked up for the rest of the decade. Inherited wealth is nice but it’s a luxury. Explain to me in very small words why it’s more pressing than the issues above.

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