Salary sacrifice to be taxed

That’s nonsense.

Who is paying inheritance tax twice on the same money?

Two different taxes being levied on the same money isn’t double taxation. If it was then paying VAT on anything you bought with money that had already been subject to income tax would be double taxation, or paying insurance premium tax on a policy you bought with money already subjected to income tax would be double taxation, or paying dividend tax or interest tax on money you had invested which had already been subjected to income tax when you earned the money would be double taxation.

These are different taxes being applied to separate transactions.

Inheritance tax is a bad tax for many reasons: it raises comparatively little, it creates perverse economic incentives, it is applied very unevenly with the largest estates paying next to nothing, there are good moral arguments against it also, and the method of implementation means that it causes a lot of unnecessary stress to inheritors in certain circumstances. However, it is not “double taxation”.

It’s very simple not sure why its confusing
Whilst IHT is on a persons estate it’s double taxation
If it’s swapped to a tax on the beneficiary it wouldnt be

Too much info to bother rifling through it for anyone here when I already understand it myself.

If anyone’s interested just Google.

Exactly.

Yes: mathematics.

No, that is two different taxes being applied to the same money as it passes through different transactions.

That’s normal and obviously happens multiple times throughout the economy as money circulates.

Double taxation is where the same money has the same tax applied to it twice. E.g. if they were to remove/ restrict income tax relief from pension contributions AND tax that money with income tax again when it is withdrawn from the pension. That would be totally unacceptable and the equivalent of deciding the apply a new income tax to money withdrawn from ISAs even though income tax was already paid on that money before it was put in the ISA.

Again in English?

Maybe a link?

My accountant sorted out mum's inheritance tax, she never once referred to it as "double taxation".

The Government re advice on it
and
Accountants that deal with and advice on that

Where does this "classification" come from?

It's tax free either way actually.

You can divide it up and use it as part of your income using flexible drawdown in a number of smaller payments. It's called Uncrystallised Funds Pension Lump Sum (UFPLS).

I know. I didn't make any comment about that.

Currently IHT is a tax on the estate. Not the inheritor

I Agree Hmrc should give more time to pay it and wait till assets are sold and sitting in a probate account ( assuming proof of ongoing sale is given )

I inherited, i didn't earn any of that money, let alone help cause house price inflation.

I was basically free money, it was below the TH but i had to have paid tax on it, thats only fair.

However, i do think IHT should be at your personal tax rate, not a blanket 40% and there should also be a much longer period to settle the bill when a property has to be sold.

Inheritance tax is classified as a double taxation
VAT on goods are not classified as such

( Not necessarily on all of the estate )

That isn’t double taxation anymore than paying for something that includes VAT is double taxation because you already paid income tax on the money.

If you paid income tax on pension contributions and then income tax again on those contributions when you got the pension, that would be double taxation. It would be being treated as your income twice.

I wasn’t aware any Government has announced there won’t be state pensions in the future
Do you have proof of that ?

There is already double taxation.

• For example Inheritance tax which is a tax on the value of a deceased person's estate, the assets of which were likely already subject to income tax during their life.

For most other areas of double taxation there are relief mechanisms but these do not always give 100% relief

Oh, and pension isn't taxed the same as other income. 25% is tax free, then it's taxed the same.

Also, if you're a higher rate tax payer when paying in but basic rate when drawing, you obviously gain there as well (but are probably living on less, of course).

Employees save NI in this type of scheme too.

I don't think employers will stop pensions, partly because they can't anyway, but the £2,000 exemption point still makes it worth it. That's £300 per employee pa saved.

Yours may indeed be salary sacrifice, but what you described (and confidently stated I was wrong about) was not.

Apology accepted.

Your net pay, if this comes in, may go down by about £10-20pm.

Not sure why your HR are spending their time "modeling" this when it's not yet announced properly and it's simple maths anyway. But, useful reassurance that most HR teams are an unnecessary expense. Oh, I work in HR, have done for thirty years.

and how does 78 year old Mabel down the road at no 15, who only gets the standard state pension, dictating how the country is run……😂😂😂
slaving for no reason?……er, just paying your way….like millions of others including pensioners in their working lives.

If you not a feckless layabout you're going to be paying more tax after the budget. I'm just going to suck it up as the price to pay to get a Reform majority at the next election. Labour have taken a inherited blackhole and multiplied it with Reeves financial incompetence

They have already massively damaged employment with their jobs tax, now they want a pension tax to stop us saving. They really won't be happy until we are all at home on the dole.

You can strike through your swearing, but I can still read it!
Private pension is taxed like any other income when you take it out and as far as I know, it's taxed according to the same thresholds applicable to income tax. There is ZERO tax avoidance here. The ONLY advantage that Reeves would kill off if she went ahead would be for employers who can indeed save some NI by supporting their employees by matching their contributions. For the individuals, like I said, the revenue is then taxed when they use it. For the employers, saving on NI is the only reason they would take part in that scheme. So what do you think will happen? Private pension savings will basically dramatically decrease because companies will stop offering their employees that benefit.