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Original poster

What % of all deaths (uk) resulted in an inheritance tax bill in 2021-22? you're not previewing try and have a guess?

229 replies

HecatesBees · 30/10/2024 22:46

What % of all deaths (uk) resulted in an inheritance tax bill in 2021-22? you're not previewing try and have a guess?

Some 4.39pc of all deaths resulted in an inheritance tax bill in 2021-22 – a total of 27,800, according to official figures.

If your guess was higher, pick YANBU
if your guess was lower pick YABU

(I would have guessed higher, maybe even up to 50%

OP posts:
Aaron95 · 31/10/2024 12:10

MeanMrMustardSeed · 30/10/2024 22:54

I guessed 3%. Agree that thresholds should increase as house prices increase. It’s only fair, otherwise fiscal drag impacts people the policy wasn’t trying to address.

I would prefer that thresholds should not rise in line with house prices. Inherited wealth is one of the main drivers behind house price inflation and why it rises so much faster than regular inflation.

People are not spending more to buy a better house, they are just offering more and more money for the same houses.

Original poster
HecatesBees · 31/10/2024 12:07

Boohoo76 · 31/10/2024 12:01

Well please do explain why you made the point about not looking at loopholes?!

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I included the loopholes for the whole thread, and unlike the rich (Duke of Westminster and others including on this thread) I have no issue paying IHT.

Like this one (not picking on you @Brananan , just first one I found not sure if there are more

Brananan · Today 07:46

genesis92 · Today 07:43
I find it hard to believe that only 4% of people have estates over the current threshold. It's really not that high when you factor in how high house prices are now.
How many times can the government tax the same pound? Have you ever thought about it
They don't! The 4% figure is those who pay. It doesn't include passing to spouse and of course people use schemes to avoid it, as they are entitled to do and as we are beginning to do.
My PILS don't intend their estate to pay a penny in IHT, despite being worth 2 million, so we will do everything we can and take advice to avoid it.

I think it speaks volumes though you thought I meant you?

OP posts:
Boohoo76 · 31/10/2024 12:01

HecatesBees · 31/10/2024 11:57

You can assume what you like, and be as arsy as you like, no skin off my nose.

You are projecting your own thoughts on what I wrote, but I wrote what I wrote.

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Well please do explain why you made the point about not looking at loopholes?!

YellowAsteroid · 31/10/2024 12:00

Radiatorvalves · 30/10/2024 22:49

I knew it was 4%. Really can’t understand why people get so worked up about IHT. The 4% can afford to pay it. Wound up by the Daily Mail?

It’s aspirational. A lot of people don’t realise they are absolutely ordinary and not rich.

Original poster
HecatesBees · 31/10/2024 11:57

Boohoo76 · 31/10/2024 11:54

You were referring to what you would be paying and that you weren’t complaining about it and therefore implying that I was complaining about what I had paid…except that I didn’t pay anything because I didn’t inherit anything. Language is not all about what is written in black and white.

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You can assume what you like, and be as arsy as you like, no skin off my nose.

You are projecting your own thoughts on what I wrote, but I wrote what I wrote.

OP posts:
Boohoo76 · 31/10/2024 11:54

HecatesBees · 31/10/2024 11:51

And again, where am I making assumptions?

I'll paste it for you "So your family member left over £325,000 which was then taxed at 40% over what what £325,000"

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You were referring to what you would be paying and that you weren’t complaining about it and therefore implying that I was complaining about what I had paid…except that I didn’t pay anything because I didn’t inherit anything. Language is not all about what is written in black and white.

Another2Cats · 31/10/2024 11:53

ShanghaiDiva · 31/10/2024 11:37

Agree 100% that the assumption that it’s huge estates that pay tax is frustrating. IHT nil rate has been frozen since 2006 if you have no children the extra allowance does not apply so tax to pay over £325k which is not a massive estate.

Edited
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"£325k which is not a massive estate."

Taking the country as a whole it is. The latest HMRC figures say that out of 634,000 deaths in 2021-2022 there were 103,750 that had a net estate of £300k or more.

So, £300k puts you in the top 16%.

Original poster
HecatesBees · 31/10/2024 11:51

Boohoo76 · 31/10/2024 11:49

I didn’t inherit from the estate. Stop making assumptions.

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And again, where am I making assumptions?

I'll paste it for you "So your family member left over £325,000 which was then taxed at 40% over what what £325,000"

OP posts:
Boohoo76 · 31/10/2024 11:49

HecatesBees · 31/10/2024 11:47

So your family member left over £325,000 which was then taxed at 40% over what what £325,000

I'm not seeing an issue here.

My DM has assets over £1m, and me and my siblings are not looking at loopholes to pay less.

Show quote history

I didn’t inherit from the estate. Stop making assumptions.

Tiredalwaystired · 31/10/2024 11:49

BunfightBetty · 30/10/2024 22:59

Agree. The people in the SE inheriting property over the threshold will also be faced with property prices way out of proportion to wages if they want to buy their own home, so it’s disproportionate that they be taxed at the same level as people in areas of the country where property can be bought at a fraction of the price.

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But what if the people due to inherit have already moved to a cheaper part of the country?

Another2Cats · 31/10/2024 11:48

Boohoo76 · 31/10/2024 11:04

It’s the assumption that it is not paid on the estates of ordinary people that infuriates me. It’s an incorrect assumption. It’s actually ordinary people who are least likely to tax plan. I actually think it should be paid on every estate at a lower amount. 10% across the board, a much fairer system.

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If this person left an estate worth say £350k then HMRC figures say that 8.4% of people who had an estate worth between £300k and £400k paid IHT.

So, 92% of people with an estate worth £350k did not pay any IHT at all. This would imply that they were either married and/or had children.

But, as you rightly say, there are people who leave between £325k and £400k who do end up paying IHT. HMRC say that there were 2,210 people like this out of total deaths that year of 634,000.

user1492757084 · 31/10/2024 11:47

Inheritance tax should be low and limited to the very rich, as it seems to be. People have already been taxed all their lives.

The younger generations have it worse off so I hope many inherit money that allows them to buy into businesses and own homes etc. Hard working parents should be allowed to directmost of their wealth to their kids, grandchildren and charities of their choice.

I don't agree with high taxes. Just my personal opinion.

Original poster
HecatesBees · 31/10/2024 11:47

Boohoo76 · 31/10/2024 11:20

The vast majority of those other estates can take advantage of the marriage and children allowance, so it’s not a case that they are all of a lower value.

You were the one that challenged me first. So why wouldn’t I respond, but you perceive it as me having a go at you. Strange!

Show quote history

So your family member left over £325,000 which was then taxed at 40% over what what £325,000

I'm not seeing an issue here.

My DM has assets over £1m, and me and my siblings are not looking at loopholes to pay less.

OP posts:
ShanghaiDiva · 31/10/2024 11:37

Boohoo76 · 31/10/2024 11:04

It’s the assumption that it is not paid on the estates of ordinary people that infuriates me. It’s an incorrect assumption. It’s actually ordinary people who are least likely to tax plan. I actually think it should be paid on every estate at a lower amount. 10% across the board, a much fairer system.

Show quote history

Agree 100% that the assumption that it’s huge estates that pay tax is frustrating. IHT nil rate has been frozen since 2006 if you have no children the extra allowance does not apply so tax to pay over £325k which is not a massive estate.

Boohoo76 · 31/10/2024 11:20

HecatesBees · 31/10/2024 11:17

Where did I say it shouldn't apply to all estates?

What I said was "he was in the less than 5% of estates that needed to pay IHT" not sure why you are having a go at me.

He had assets worth more than £325,000 on death which is why his estate had tax to pay on the remainder, which is more than 95% of other estates left (excluding the marriage allowance, and children allowance and trust fund fuckers)

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The vast majority of those other estates can take advantage of the marriage and children allowance, so it’s not a case that they are all of a lower value.

You were the one that challenged me first. So why wouldn’t I respond, but you perceive it as me having a go at you. Strange!

Original poster
HecatesBees · 31/10/2024 11:17

Boohoo76 · 31/10/2024 11:14

He wasn’t a friend, he was a family member and he was perfectly ordinary. Grew up in a council house, did an apprenticeship, saved to buy a terraced house, paid the mortgage off and lived in it for the rest of his life. Do you know the breakdown of that 5%? How do you know that they are not “ordinary”?

Why do you think that IHT shouldn’t apply to all estates?

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Where did I say it shouldn't apply to all estates?

What I said was "he was in the less than 5% of estates that needed to pay IHT" not sure why you are having a go at me.

He had assets worth more than £325,000 on death which is why his estate had tax to pay on the remainder, which is more than 95% of other estates left (excluding the marriage allowance, and children allowance and trust fund fuckers)

OP posts:
FixTheBone · 31/10/2024 11:14

BIWI · 30/10/2024 22:49

I knew that figure.

I don't disagree with taxing inherited, unearned wealth - but I do think it's disproportionate/unfair for homeowners in the SE. You can 'hide' money apart from the value of your home - and if you live in the SE, a reasonably standard home will cost more than the threshold for IHT. I think this should be taken into account.

I think it should be doubly penalised to force a rebalancing across the country.

Nobody is going to do that voluntarily.

Wealth inequality is the driver behind poverty.

Boohoo76 · 31/10/2024 11:14

HecatesBees · 31/10/2024 11:07

You will always have outliers though, you cannot cover every different scenario.

Less than 5% of people leave an estate that requires inheritance tax (obviously excluding the rich bastards who leave in trusts etc!) so your friend is not in the ordinary pile, he was in the less than 5% pile, not the other more than 95%

Show quote history

He wasn’t a friend, he was a family member and he was perfectly ordinary. Grew up in a council house, did an apprenticeship, saved to buy a terraced house, paid the mortgage off and lived in it for the rest of his life. Do you know the breakdown of that 5%? How do you know that they are not “ordinary”?

Why do you think that IHT shouldn’t apply to all estates?

YellowAsteroid · 31/10/2024 11:13

I think the fear of IHT is far greater than the actual number of estates which have to pay it - isn’t that number something like only 10-12% of estates?

Original poster
HecatesBees · 31/10/2024 11:07

Boohoo76 · 31/10/2024 11:04

It’s the assumption that it is not paid on the estates of ordinary people that infuriates me. It’s an incorrect assumption. It’s actually ordinary people who are least likely to tax plan. I actually think it should be paid on every estate at a lower amount. 10% across the board, a much fairer system.

Show quote history

You will always have outliers though, you cannot cover every different scenario.

Less than 5% of people leave an estate that requires inheritance tax (obviously excluding the rich bastards who leave in trusts etc!) so your friend is not in the ordinary pile, he was in the less than 5% pile, not the other more than 95%

OP posts:
Boohoo76 · 31/10/2024 11:04

HecatesBees · 31/10/2024 10:59

So assuming no children to leave to, so he had an estate over £325k, do you think that tax should not have been paid on it?

Show quote history

It’s the assumption that it is not paid on the estates of ordinary people that infuriates me. It’s an incorrect assumption. It’s actually ordinary people who are least likely to tax plan. I actually think it should be paid on every estate at a lower amount. 10% across the board, a much fairer system.

Original poster
HecatesBees · 31/10/2024 10:59

Boohoo76 · 31/10/2024 10:30

It was paid on the estate of a family member. He had a very ordinary job and a very tatty three bedroom terrace…in London and he never married. Well, for the majority of his adult life it was illegal for him to marry because he was gay. So, yes it is paid on the estates of ordinary people in some cases.

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So assuming no children to leave to, so he had an estate over £325k, do you think that tax should not have been paid on it?

OP posts:
irregularegular · 31/10/2024 10:57

I knew it was 4%. I strongly believe it should be a higher % and that most of those who pay should pay more. I honestly cannot understand why people are so against paying more IHT to allow eg income taxes to fall slightly (or to pay more towards public services, according to your preference). As taxes go, it seems like one of the best to me.

SoiledMyselfDuringSomeTurbulence · 31/10/2024 10:35

NotSayingImBatman · 31/10/2024 10:27

House value to care home fee ratio. A cheaper house will be used up on fees much faster than a more expensive house.

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Yep, it's more likely that a person needing care will outlive the value of a 800k house than a 200k house. And the 500k house has probably seen a greater amount of unearned equity increase, of course.

Boohoo76 · 31/10/2024 10:30

dropoutin · 31/10/2024 09:23

Fairly ordinary people within the wealthiest 4.39%?

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It was paid on the estate of a family member. He had a very ordinary job and a very tatty three bedroom terrace…in London and he never married. Well, for the majority of his adult life it was illegal for him to marry because he was gay. So, yes it is paid on the estates of ordinary people in some cases.