100% inheritance tax?

[Kendodd]

Or 95%, something like that.
Thought experiment.
How would it pan out?

I would move my money elsewhere and/or consult a financial advisor to exploit loopholes.

Or just leave the country altogether. That’s one of the benefits of having more than one citizenship.

What's all this bollocks about double taxation.
For a start, no it hasn't been taxed already, most of it's from house price inflation.
Plus, loads of money is double taxed, VAT, council tax, stamp duty etc.

Well, the rich would find a way round it, as they always have but the average person would have nothing to leave their loved ones.

It’s really easy to avoid deprivation of assets rules

Completely agree.
Any changes would have to get through the house of lords as well though.

This is so true. If you are paying iht, you are not very rich. It is so easy to avoid.

You’ve made the point perfectly. YOU did absolutely nothing for that £280k.

Leave inheritance tax roughly as it is but increase the tax liability of properties. A lot of peoples wealth comes from the rise in the value of their homes. This wealth is totally untaxed and they haven't worked for it. Also change the way trusts work. Also change the way care of the elderly is funded. Not sure what's fairest though.

We will pay inheritance tax but are giving money to our kids now to minimize our liabilities.

Stamp duty is also a bloody travesty. Why TF should government take a cut when private land changes hands? Why should I have to pay nearly £30k on top of the ridiculous price just to buy a 3 bed home for my family in the south east?

Except be the one her mother wanted to give it to.

I really hope not. An inheritance is the only chance I'll ever have of being able to afford to buy (or even rent) my own place to live. If it's all taken off me, I'll be relying on the government to house me once my parents die, and I don't rate my chances very highly unless there's a revolution or something.

Many wealthy would leave when required to ensure they could pass down their wealth

I'm with all those who suggest you give your inheritance away if you don't want it, OP. For my own part, I'll be doing everything possible to ensure that my children inherit from me (I don't stand to inherit anything, myself).

Same here. If the State is going to redistribute wealth then they can do it in my direction, after I've wasted what I have on exotic holidays and other such decadent splurges*.
The whole country would be on its uppers within a few generations.

*I wouldn't really. I'd surreptitiously pass it down to grandchildren before the taxman could get a sniff.

The vast majority of earnings is taxed more than once.

PAYE, groceries, road tax, petrol tax, Vat on repairs and services, savings are taxed, pensions are taxed, pension contributions are taxed, gas and electric and don't we know it. Everything is taxed after we've already paid tax on our earnings.

We're left with a fraction of gross pay.

Fucked if I'm giving my house to the tax man as well.

If I didn't think my son would inherit anything, I'd step right off the gas and my tax contribution would tank.

People who bang on about increasing inheritance tax seem to ignore the reality that it hits ordinary people most, as the very rich always find a way to avoid it.

So where would this 95% of people's assets go to then?
To charity? Many people don't trust charities anymore, as they pay huge salaries to their CEOs, and there have been scandals in the past due to mismanagement of funds.
To the government? I don't want all my assets that I have worked hard to accumulate to go straight back to the government - I don't trust them to spend the money they already get, why would I want to give them more. They have shown countless times how wasteful and inefficient they are.

It's human nature to want to protect what you have, and pass it on to your children and people will find a way to do so. Most of us, if we ever get an inheritance, it's usually a one off and doesn't confer fabulous wealth, maybe just enough to pay off debts, clear a mortgage, have a nice holiday etc. basically make like a little bit more comfortable. It doesn't catapult us into the mega rich category.

To really tackle inequality you would need to go after the myriad of ways rich people evade tax, like trusts etc. But that won't happen because those in government want to keep them and their friends in wealth. Taxing corporation profits properly would also be a better way of raising revenue.

Then give it to their cleaner then if you dont think you deserve to inherit it.
Why should the government get 100% of it when tax had already been paid on it at source? Why shouldn't families be able to gift to each other without the government getting their mits on it and wasting it on those no more deserving?

@Soontobe60 Neither has the government, what's your point?

What would the threshold be in your thought experiment?

Family businesses and farms in the hands of corporates owned by American shareholders within one generation probably. Or, if they were able to be passed on in trust then loads of fake "family businesses" set up as fronts to dodge IHT.

Encourage them to donate instead, say you don’t want it

Hand it over to HMRC or their cleaner. Pledge it to a charity, we’ll all say well done 🙌

Absolutely not! Would just be dodged by those who can, lawyers setting up trusts would boom.

How very worthy of you. I suggest you donate the entire lot to charity when you do inherit.

In the meantime, inheritance tax is legalised theft, as the pp said. The person who you will inherit from has already been taxed on their income etc.

You haven't yet answered as to whether you plan to give all your ill gotten gains away then?
Also, lots of things entrench inequality - wealthy people will give their children many benefits during their lifetime even without inheritance: private schooling, nepotistic working opportunities, private healthcare etc.