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

Firstly inheritance is taxed heavily.

yes it may seem unfair but what’s the alternative, someone works hard and earns well but can’t then spend it on what they want - their children and their future. Also doesn’t seem fair.

Am I the only one who inherited from
people who lived normal lives? They didn't have to make like a Dickinson character to have something to leave!

Which is exactly why it should be taxed!!! To the extent it is to do with property, it is not disincentivising work at all. It's essentially a windfall.

The problem is that it's the same group of people, or actually families, who are expected to fund the rest during their lifetime and then after death as well - they work hard/smart, pay a lot of taxes, both income and capital, accumulate some wealth and then have to give it over.
Another group might work or not, fritter away, receive all sorts of benefits and then their care is paid by the state. Again, there are tragic circumstances for some, but a lot of it down to own attitude and decision making.
At certain point one begins to question why work hard if state takes it all anyway.

They are not quite the same thing.

Whether it's inheritance tax or income tax no one actually owes that money. You certainly don't owe your life savings to anyone.

In the case of income tax the government takes it because it needs money to run (And to send it to secret off-shore accounts, but that's another matter).

People with more money are supposed to pay more not because they owe more, but because they can afford it. It's a practical thing. You rob from the rich because robbing from the poor doesn't work so well.

With inheritance tax it's supposed to ensure that the rich get a little poorer. To even things out and narrow the gap between rich and poor. It's an adjustment based on a moral judgement that having more is a bad thing.

Now speaking as someone on the bottom end of that I can see the point in doing so, but I can also see why it would be resented. If I should win the lottery this week I will have no particular urge to share it with strangers just to even things out.

Hmmm how are we going to even out intelligence and good looks next? Dumb down clever people? Give beautiful people plastic surgery to make them more average looking??

YAB Ridiculous

Stamp duty really pisses me off.

keeping wealth in the hands of the privileged

The thing with this is that leaving an inheritance doesn't necessarily mean that someone is wealthy or privileged. My parents and my in-laws both grew up during the war and had an attitude of 'make do and mend' and 'save for a rainy day'. None of them were high earners but equally lived fairly frugally and when they passed away over last few years, DH and I received a decent inheritance from them. I can't see that this is wrong, they could have had bigger houses, more holidays and then there would have been no savings but they didn't choose to live like that.

Now stamp duty really is a stupid tax!

@NeedANewOne25 no idea but that's the limit for a married couple leaving it to dc as I said.

When my MIL died my DH inherited some money from the sale of her house. She'd bought it in the 1950s by working hard, saving the £50 deposit and lying on the mortgage form as she knew they wouldn't give a mortgage to a single mother. She never had any money and when she died she had bare boards, a barely functional kitchen and washed in a sink. Was she privileged?
Many people will now have wealth in their homes which they will seek to pass on. It's just a function of the huge increase in property values, not privilege. Yes, it has and will lead to unfairness.

If you abolished inheritances, the productivity of the UK would drop off a cliff. My house is mostly paid off and I have a decent enough pension. I am basically earning now to have a better retirement and to save money to help my kids when they graduate. If inheritance was banned I’d just stop working now tbh and retire. What would be the point in toiling away?

Productivity is already shit & some of that is due to high housing costs and low wages.

So you're a communist op?

When did it increase from £650k?

Wait until you hear about junior ISAs and pensions.

but is it not a positive thing for society as a whole to encourage people to to save and invest so they can afford to pay for whatever care they may need?

people don't want to pay for their care though.

How old are you, OP?

And the kids receiving that money will be buying in the same distorted housing market, and thus need all the help they can get.

But you understand why better wages would benefit young people more?

If you abolished inheritances, the productivity of the UK would drop off a cliff. My house is mostly paid off and I have a decent enough pension. I am basically earning now to have a better retirement and to save money to help my kids when they graduate. If inheritance was banned I’d just stop working now tbh and retire. What would be the point in toiling away?

@WednesburyUnreasonable but is it not a positive thing for society as a whole to encourage people to to save and invest so they can afford to pay for whatever care they may need? IHT doesn’t achieve this, particularly now that pensions are also included.

@oakleaffy A married couple can leave 1m to their dc before you pay IHT.

@LillyPJ I don't see how it mitigates it a bit because as I said things are getting more unequal not less. It just perpetuates the cycle.

And I don't understand the argument that we should ignore that doctors and the like are leaving the country because salaries are crap & housing is so distorted because some people are born more beautiful than others.

Life isn't fair but we have a problem when young people need significant help to obtain housing security & income isn't as relevant.

Inheritance is severely taxed.

40% over a limit of £350,000

{I haven't inherited, but will hopefully leave to DS}

Yes, It seems unfair that some people inherit millions and others don't..but it's usually to do with property that they bought decades ago that has rocketed in price.

And the kids receiving that money will be buying in the same distorted housing market, and thus need all the help they can get.