What tax do you most hate

[Taxta]

I’m torn between stamp duty and inheritance tax.

Stamp duty. Absolute idiotic tax.

Also student loans aka 'graduate tax'.

Stamp duty for me. I am not opposed to some form of taxation on the disposal of a residential property but on the purchase? No, we have got to get our young people moving on and up at an earlier age, into a position where they can start families earlier again (we are looking at a future population crisis). And we have got to keep people moving on because with a move, even amongst modest properties, comes a massive amount of trickle-down to removal companies to new kitchens to paint factories.

Then spend it all before you die! You earned it, you enjoy it! Or give it to your kids early enough that it won’t get caught by IHT (7+ years before you die).

Thanks. I know the rules. Still no legitimate reason why the money I earned should be taxed twice. I kept my side of the societal contract, I’ve contributed far, far more than I or my family could ever take. Enough.

Exactly this. People keep saying on this thread that to pay IHT you have got to be ‘very wealthy’ but anyone who thinks an estate of, say, £600,000 when £500,000 of that is a modest 3 bedroomed home is deluded. On that sort of money you’re not going to take advantage of loopholes like setting up businesses in the Cayman Islands or some such thing so that your home is owned abroad but still by you, because it’s totally disproportionate. IHT affects the squeezed middle as always. It also gives people a buffer in their old age - if you’ve inherited a bit of money that might cover your care fees when you’re older instead of needing to be funded by the state.

Million comes from 2x nil rate bands for spouses and 2x residence nil rate bands. It assumes the surviving spouse inherits everything on the first death and then they get both bands on their death.

also assumes that there are direct descendants who will inherit the house and that the total estate is under 2 million

Would I swap income tax for inheritance tax? In a heart beat. Why wouldn’t you?

and I got married to avoid IHT on my late DH’s estate.

Removal of the personal allowance and resulting 62% tax rate between £100-125k.

Makes no sense, incentivises all sorts of negative behaviours.

Oh, an honourable mention for VAT on sanitary protection. Who thought that up ..

yeah, thought so.

Stamp duty also terrible, and particularly punitive if you live in a HCOL area.

I’d like a bigger house but that might attract a £100,000 stamp duty bill. Thats for a terraced house in an ok part of London.

To pay the £100,000 stamp duty bill… I need to earn £200,000. So I need to earn £200,000 and give the entirety of it to HMRC.

Agree.

I would have a zero rate of tax at 18, gradually rising to the normal rate at say 28 for both employees and employers.

University then becomes a straight trade off decision between zero tax today but lower income or if say you want to become a doctor, engineer, dentist etc then it makes sense to go to university.

It also encourages young people to get into work, which sets them up with a good work ethic for life. It encourages employers to employ young people. And it helps young people in their early years to settle down, get a house, have children etc etc.

You don't declare your savings, just the interest. You only pay tax on the interest you have earned in the tax year (if it's over the personal savings allowance).

Sigh, it isn't taxed twice. You paid your tax when you earned it, the beneficiaries pay their tax on the money they receive.

To say "it's being taxed twice" is like someone saying that the tax has already been paid on their wages as it's come out of someone else's profit, which they've paid tax on.

I'll be making sure the government gets nothing from my estate. But you go ahead and choose to pay tax, there's also a way to pay extra tax whilst you're alive if you like.

Children who lose their parents early: that's who get really screwed by this tax. Utterly despicable.

Sigh. It IS taxed twice. It’s my hard earned money, I took the risk (which most people don’t want to do today) and I earned it. I paid tax on it at source. That is already taxed income. Tax has been paid.
The government earns nothing and creates nothing. All it does is redistribute already taxed income. And the key is in “already taxed”. I’ve paid it. No more is due. They are already distributing what I’ve earned.
Sigh away because it’s not your money, your time or your risk. Morally, it’s wrong.

But THEY took the gamble on the house market therefore it’s THEIRS to do as they wish!

That’s true. People can pay all theirs if they want to.

Except it wasn't really a gamble was it?
I mean if they invested and risked their own money by say setting up a business and worked silly hours to make it a success then yes that's a gamble.
But buying a home to live in and bring up children in, that then shoots up in value because of Government policies that restrict house building causing a shortage in supply, is not a gamble.

Income tax and SDLT.

I'm sure the government will refund negative tax if people sell their house at a loss... 🙄 Except they don't, of course. It's the house-buyer's risk.

You can say that about stocks and shares.. or any investment. Just to humour you though, even if it wasn’t a gamble, it’s still theirs.

Er, we use an accountant. I know what I'm talking about.

Because they are your parents and you know that where they live they need to have property of value as a safeguard for future downsizing or care costs

I'm afraid I think that's disrespectful. People are entitled to the value of the home they paid for by making a good investment. Yes there is some luck. I can't begrudge people good luck.