What tax do you most hate

[Taxta]

I’m torn between stamp duty and inheritance tax.

Do you mean you are declaring pension savings? That's about tax relief, not paying tax on your savings.

Are people equally entitled to the increases in the value of their investments if they made a "good investment ", yet that is subject to CGT?

Inheritance tax.

Such a depressing thread. I am pleased to be paying taxes, albeit on a lowly teacher's salary, so not in a higher tax bracket. My taxes help those in society who need it the most, so I consider it a privilege and a moral duty. If I earned more I would be glad to contribute more in tax. Why people are wanging on about hating taxes is beyond me.

Don't you get to deduct the costs of generating income in the uk? In my country there's an automatic 750 euro deduction and if your costs exceed that you detail them and deduct them. For instance commuting costs often go over that so you detail them and deduct.

CGT is forgiven on death, so if you leave investments to your children then they don't pay CGT.

There's an argument for imposing capital gains tax on all residential property sales (no lower limit), to replace SDLT - but it would need to make sufficient allowance for inflation and investment, which isn't obvious.

It would still make house sales less efficient, although slightly less so than SDLT, since it wouldn't penalise multiple moves in the same way.

But frankly I don't trust the government not to use that to steal yet more from the 'broad shouldered' they despise so much.

I used to feel that way too. It was nice.

Then I saw how Labour use taxes to harm those they dislike for ideological reasons, even where the tax is actually harmful to the country.

And I saw how many people cheered them on: some unable to understand the economics, but many so consumed by spite that they would rather everyone was poorer so long as others (my family) lost more.

A pretty long way from the goodwill and positivity I had assumed they would feel towards those who subsidised their own low productivity!

And then I started looking into how the tax snd welfare system actually works, and how supposedly universal state services paid for out of taxes are allocated. And you can't un-see that.

So now I consider the level of tax levied against me to be exploitation and theft.

And I no longer have any illusions that I'm part of a mutially-supportive, reciprocal society.

You have to earn quite a bit to be privileged enough for any of your tax to be helping the more needy. I think you have to earn £41,000+ to cover the costs of your own provision from the state (if you have no children).

I am on a lowly teacher's salary and I think it is a good thing that people are 'wanging' on about taxes. I don't have blind faith in any government to spend tax money wisely and people scrutinising tax and spending is a good thing. Why shouldn't people care about the tax they are paying?

Inheritance tax. Perhaps it should be tiered on estates worth over 5 million, say - but it’s ridiculous for so many.

Also (I expect to be shouted down on this! 😂) - VAT on school fees. By educating your children privately, you are not using state education that your taxes pay for. So HOW does being taxed again for this make sense? In Finland you get a rebate from the government if you’re not using state education!

And if you save in an isa the interest is tax free so doesn’t need declaring to HMRC.

Same with benefit in kind tax on private health care. Again you’re saving govt money so if anything you should get tax relief.

Commuting costs aren’t allowable in the uk- another “tax” on workers!

Should be based on your use of public services.

Oh, that's pretty shit, commuting costs can be so expensive that if you can't deduct them it'd some jobs unaffordable.

IHT is unfair for single people with no direct descendants. Limit is £325k. Which is basically the value of my house and savings. Hence I’m working my way through my £1.2m pension pot like the rate of knots. 🤣

So the State spends on average £17k per person per year on everything- education, state pensions, healthcare, roads, defence, policing etc etc. Or £1.3 million as a cumulative lifetime per household.

This is an average and clearly varies massively - with more spending in your early education years (£100k) and in your older years on healthcare (£250k) and State pension (£250k).

Assuming married and two children then the household income where you move from net recipients of state spending to net contributors is between £52,500 to £65,000.

The uncollected tax.

Don’t ever move house I guess. Ridiculous suggestion!

Interesting, I expected it to be about that figure per person, not household. That would make more people net contributors than I thought.

Yes, completely unfair as the nil rate banding hasn’t been increased since 2009.

I mean if you are single with no direct descendents why would you give a shit about IHT being levied on your estate. I mean you will be dead so it is not like you'll need the money or really care.

People are baffling sometimes.

May be we need a mirror thread to this one. "What publically funded service would you be willing to pay full market price for?"

It can only be a rough estimate as it is very hard to predict life expectancy and the future cost of elderly care and cost of health care. Treatments that are available now didn't exist when my parents were my age.

While I largely don't mind our different tax bands, I do feel our Scottish Higher Rate is somewhat unfair.
We pay 42p on earnings between 43663 and 75000 meaning that between 43663 and 50000 we pay 42p + 8p NI meaning a 50p rate before you factor in any pension or student loan deductions.

Also Land and Buildings Transaction Tax (LBTT) - that's our version of Stamp Duty - starts on properties worth 145001 or 175001 if you're a first time buyer.

the tax system works generally on the basis of the more you have/earn the more you pay. But in this scenario more is paid because you didn’t have children which is bonkers imo. The allowance should be applicable to all estates regardless of whether you have direct descendants.
my dm’ s estate .75 million - no tax
dh’s uncle 400 k - tax to pay.
either tax both or neither.