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

Rumour is Robbing Rachel is looking at extending the 7 year IHT rule so it looks like they’re going to try!

I will never get a penny of inheritance, not a penny. I have busted a gut to ensure that I have something decent to leave my children. Should that be taken off me? Get tae fuck!

In fact this thread is probably giving her ideas.

She'll justify it with another redefinition of "working people".

Yet a vast number of people have paid nothing for these services and never intend doing!

Doesn't change the fact the majority have not paid enough...

Because the state is inefficient and wasteful. The economic problems are very much self-inflicted and will not improve unless and until productivity improves. The state taking more and more money helps no one.

Christ, this is the level we are it. Yep an ageing population has nothing to do with it & productivity has nothing to do with low wages, a lack of investment & high housing costs 🤦🏻‍♀️

My dad inherited a whole £8k when his mum died. Hardly wealth, yet you think he should have not even got that?

A couple of council estate kids from big families who worked bloody hard for 50 years

So you grew up on a council estate, who paid for that?

There shouldn't be an IHT. All earned should be taxed correctly at the point of earning it. Why should I be taxed on my salary, choose to save it instead of spaffing it, and then pay tax again on that same money. Its bollocks.

The vast majority of inheritance has come from housing equity gains which hasn't been earned..,

Tbh people are living a lot longer so quite often you don't get your inheritence until you're older yourself. I'm 54, and my surviving parent is 76. She could be around when she's 90 and I could be cracking on towards 70 myself. Likewise my dhs parents. I think its rare someone in their 40s get inheritance unless their parents die young.

@Colourfulfairylights I completely agree, I'm amazed how short sighted people are as you say.

It is unfair that I have spent my money on sweets and eaten them so can’t by anymore but Sophie saved her money so can buy sweets now and give them to her friends! She should share her money with everyone so I can get more sweets!

So you are arguing to abolish pension credit? What about social housing?

But the parents who are handing over inheritance have likely prioritised saving it for their children.

Again the vast majority has come from a distorted housing market.

There would be an exodus of wealthy from the UK as older people leave with their savings and enjoy warmer climates elsewhere with lower costs in order to avoid paying 100% inheritance tax.

Where would they go? The vast majority of wealth is tied up in housing.

Again the vast majority has come from a distorted housing market.

Not vast majority, but still - the market distorted for everyone in the same way.

• Your parents worked several jobs at a time, saved hard, bought house for £5k decades ago and want to pass it to you. The house in now worth £1m.
• My parents sat on their asses and spent it all so nothing to leave to me.
• Bob's parents equally bought their house but for £2k and want to leave it to him, it's now worth £500k.

Ermm no. My grandparents worked so hard to make sure we have a little nest egg when they pass. Why on earth should that be taken away when it's what they worked for??

1. His inheritance is in a trust. Anyone benefitting from a trust pays 6% of the total (9 billion) in tax to the government every 10 years. In addition to this, any income from the trust is taxed at normal UK tax rates.

2. IIRC he was recently mentioned as one of the top UK tax payers last year. He paid around £60 million.

Incorrect. It's majority indeed but not vast, it's only just higher than pensions

In the April 2020 to March 2022 period, net property wealth made up the largest proportion of household wealth in Great Britain (40%), followed by private pension wealth (35%). Net financial wealth (14%) and physical wealth (10%) made up much smaller proportions.

Household total wealth in Great Britain - Office for National Statistics

It's pensions and this is why RR included them in IHT. People will wake up to this very soon.

Well obviously it’s unfair.
life isn’t fair…

But - would it be MORE fair to take away the products of people’s labour? How? When? Why?

i do think there should be an upper limit on what can be inherited. It’s not good for anyone to hog huge amounts of resources until they die - better to incentivise passing it on/spending it while they are alive

Omg, Mumsnet's selfish conservatism again rearing its ugly head.

You would see many entrepreneurs leave the UK particularly when their businesses grow enough to let them do so.

Higher earners are leaving already...

Basically this ridiculous idea just makes the UK poorer.

We are already poor, that's the point.

Not vast majority, but still - the market distorted for everyone in the same way.

You are claiming the housing market around the UK distorted equally? 😆

Your parents worked several jobs at a time, saved hard, bought house for £5k decades ago and want to pass it to you. The house in now worth £1m.

My parents didn't work several jobs, my dad worked one. They also had an interest only mortgage for years so not particularly frugal. It's well over a million now.

@Newyearsametroubles I did exclude pensions but it was in the context of replying to a post about older people selling up and taking their wealth abroad. So my vast majority was in the context of housing vs actual cash in the bank.

Ffs, what?

My parents sat on their asses and spent it all so nothing to leave to me.

Do you really believe that people don't have anything to pass on because they are feckless?!

Why do most people replying think that because life can never be entirely fair, we must make no attempts to reduce avoidable unfairness. What kind of logic is that?

What do you mean?

Which is yet another stupidity from comrados.

This will only push people to hand it over earlier. Pre Labour people would spend their savings /investments and leave pension till last as it was IHT free. Now it makes sense to pass wealth much sooner, risking not having enough left for old age and care needs. She extends 7 years rule - well, parents will start transferring on 18th birthday. I'd rather my DC fritter it all and have a good time than hand it over to state. And I'm not alone in this and it's really bad for everyone, incl DC.