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

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?

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!

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

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%?

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.

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?

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?

Then you're very privileged.

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....

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.

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.

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

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?

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

@BIossomtoes good to hear!

@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?

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

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.

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?!

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

CBA replying further.

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

The only alternative would be communism? Which doesn’t seem to have worked out very well in the places it’s been trialled.

well, you are subsidised by those idiots of us who pay 67% tax on our income.

I won't disagree that your an idiot 🤷🏻‍♀️

>will also likely have plenty to leave to DS

The whole point of this thread is whether inheritance should be taxed at 100%. If it is, you will have nothing to leave to your children because that would be unfair. That's what this thread is about.

Even if less that 100%, that's assuming all your wealth is not consumed in care home fees if you are lucky to grow old, or if (god forbid) you don't spend thousands setting up the correct legal frameworks to protect your assets and/or you die before your time.

With a highish income like yours, I'd suggest talking to a financial advisor for a realistic view on how to manage your finances longer term. You get to this point at which you think "i earn a fortune" but actually when you look at it, things aren't as rosy as it might look.

I think we should abolish money all together. We can go back to trading things we make/produce.

Definitely reckon I could trade 60 carrots and 20 tatties for an iPhone 15