To think it’s unfair that some people get inheritance while others start with nothing?

@AzurePanda the link that shows that estates that cross the IHT threshold are mainly higher rate tax payers.

Ahhhhhh the OP is another one hit wonder. A drop and runner.

CBA replying further.

And then by going under 20% we don't accumulate any wealth so no inheritance and no IHT to pay.

I don't even understand this part of your rant. Why would my estate be IHT free. Even if I didn't work at all now why would you assume I never had earned any money?!

I got quite a hefty inheritance from my parents who died too young. It was not 'generational wealth' as they had not inherited it from their parents. They worked very hard for it, scrimped and saved for a lot of years and made some good financial decisions- and luck was involved too.

My brother and I paid a large sum in inheritance tax- rightly so. At times I have felt vaguely embarrassed about my inheritance....but not embarrassed enough to give it all away if I'm honest. Maybe if I was a really good person I would have done that. Instead, I have supported charities and helped friends out along the way. And then invested- hopefully wisely- so that I can pass some on to my children too.

@wipeywipe sorry, which link? Is it that the majority of UK households aren’t net contributors in terms of income tax? Just google it.

@nearlylovemyusername err scroll up & read my other posts 😆 I already pay 40% tax on my p/t wage...DH earns more.

Can you imagine we all drop to part time to stay in 20% bracket and get free childcare? who will pay for you?

Who is paying for me? What free childcare am I getting, my dc are in school?

@BIossomtoes good to hear!

To a degree. We’re also balanced. We both believe we’re only here once and money’s to be enjoyed, not hoarded.

Bingo! here you are - don't want to pay 40% tax?

well, you are subsidised by those idiots of us who pay 67% tax on our income. NHS you use, school your kids go to - everything is subsidised because in under 40% bracket you are net recipient.

Can you imagine we all drop to part time to stay in 20% bracket and get free childcare? who will pay for you?

And then by going under 20% we don't accumulate any wealth so no inheritance and no IHT to pay. What next?

If you worked very hard to earn your money I don't think you'd feel the way you do.

I think it probably helps that I have no money worries, yes. But I would say it gives me a more neutral perspective, more removed from self interest. I would also add that I don't come from a long line of "wealth" by any means, just in case anyone gets the wrong impression. My parents were teachers. They received no inheritances. My mum grew up in council housing. My grandfather grew up properly, seriously poor.

Life isn't fair. It grinds my gears working at my cousin's business where their privileged DC employee has stolen from staff (including us), and doesn't turn up or do any work, but still keeps their job, has a trust fund, uni paid for, overseas holidays paid for them, while I get minimum wage &. They'll also get a massive inheritance. They'll have an easy ride through life.

It sucks. But, we accept life isn't fair & we can only rely on ourselves, in the end.

Because it’s the same people who have been shouldering the burden of higher income tax rates whose estates are subject to IHT.

Still waiting for that link @AzurePanda....

Then you're very privileged.

Do you think maybe that your attitude actually comes from being wealthy and cushioned from worries and stress about money? That it's left you with no understanding of people who do struggle and want to be able to try to ensure their children don't have to struggle so much?

I mean… it’s probably not fair but equally it wouldn’t be “fair” if my parents (working class) couldn’t leave their house & savings to their loved ones?

No you’re not. I inherited from people who lived life to the full, had lots of holidays and nice cars. We’re the same now, we’re certainly not depriving ourselves to leave our kids a windfall they don’t need.

The maths don't add up. Inheritance tax receipts even at the 40% rate is only 3% of that of income tax. You'd expect most of that to evaporate if you increased it. Who would not find ways of giving it away if it were 80 or 90%?

Because it’s the same people who have been shouldering the burden of higher income tax rates whose estates are subject to IHT.

Absolutely! So why should I have to be paying so much out of my hard worked for income when someone else can pay nothing on a windfall they haven't earned?

Bingo!

10 May 2024 — The 10% of income taxpayers with the largest incomes contribute over 60% of income tax receiptst hats already a huge amount!

Absolutely! So why should I have to be paying so much out of my hard worked for income when someone else can pay nothing on a windfall they haven't earned?

Why would anyone bother working hard if it was just to be taken away upon death or taxed heavily?

you’d have anyone with money moving abroad which means less tax from those paying the most tax.

Standard inheritance tax rate is already 40% (above the threshold).

According to the government ..

<a class="break-all" href="https://www.google.com/url?q=commonslibrary.parliament.uk/research-briefings/cbp-8513/&sa=U&sqi=2&ved=2ahUKEwih1ryi-K-LAxWuXUEAHXwAIhkQFnoECGQQAQ&zccpm=epi&usg=AOvVaw14KBB9JfSfxvN-Jqyz5FDH" rel="nofollow" target="_blank">Commons Library - UK Parliament

10 May 2024 — The 10% of income taxpayers with the largest incomes contribute over 60% of income tax receipts

thats already a huge amount!

@Coorgy
a few reasons. It doesn’t feel like it’s mine. Well, it isn’t, I never earned it. He was also an abusive addict so I have a lot of resentment and trauma over my entire childhood and even now I’m strongly affected by it.

What do you expect to happen? So, we’ve worked all our lives since leaving school, got reasonably savings. So whoever dies second must make sure they take al, our savings and burn it when they are cremated? Would you like our home to be crushed too in case someone other than you benefits from it?

What planet are you on?

@Kuretake Agree