What are the Tories thinking with insane £1,000,000 inheritance tax threshold proposal for family homes?

[Figmentofmyimagination]

It's almost as if they have completely lost their way.

Well, it would prevent a great deal of people from having to sell their family homes just to pay a tax bill.

Sounds great to me, will take my dad's estate out of IHT, HE's only just over the current threshold due to SE house prices

They're thinking of benefitting their friends, of course. It's incredibly short sighted given that their policies are such that it is increasingly hard for people to get onto the property ladder at all.

Rich get richer, poor get poorer

Why is it Insane ? Inheritance Tax is (wrong Anyway) .But leaving that to one side it was designed to catch the 'very Richest' estates the Upper Classes in particular. The other thing the current £325/650k Threshold is five years old and in effect £500/1Millon threashold is just an uppng of that to reflect house price rises in the last five years.

Nobody Should pay Inheritance Tax . I know Nobody on here will agree with me but so what !....

They are thinking that ppl have already paid tax on their earnings to buy the house so there shouldn't be inheritance tax except for the extremely wealthy

They promised a £2M threshold before the last election and didn't deliver on that. Now they are 'promising' half that. How likely are they to actually follow through this time?

They are thinking of using some sense, and doing something that will benefit many ordinary families at the same time as removing an injustice from our system.

What are you thinking posting this in AIBU?

Brilliant idea. The IHT limit has been too low for years.

They haven't loss their way. They know exactly what they want:

Look after the richest 1%
Accuse anyone who cares about the other 99% as being envious.

Nobody Should pay Inheritance Tax

If you plan it properly, you don't have to. It really is the only voluntary tax.

There's probably a pretty significant number if people who own houses worth that much within a lot of Tory strongholds. Many of them will be average Joes who use NHS and state schools. Housing in some areas is ridiculous. My parents have a run down 3 bed home on a main road an hour out of London and it's worth over 500 k. The idea of a million pounds giving people some kind of champagne millionaire lifestyle is about 20 years out of date.

Anyone whose home was already over the existing threshold (£375k x 2 for a couple) was surely already highly likely to be a Tory voter, whereas the more than 50% of the population who are now renting are even less likely than before to vote Tory. It must relate somehow to the maths in some key marginal seats. I don't understand it.

I live in Scotland, I'm just sat thinking WHATDAFUK

Won't win many votes up here, London maybe.

That only works if you die at the right time Toby, many people don't. It's the principle of the thing anyway, people shouldn't have to go to unreasonable lengths to be able to give their own property to their children if they want to.

It's not quite as generous as it at first seems, as they are proposing to raise the transferred allowance from £650 000 to £1000 000. Given house prices these days, it's probably not going to affect a huge amount of people.
Having said that, it's clearly an attempt to appeal to the middle classes and to sidetrack the public from the issue of just how big further spending cuts will be.

Justonemore I posted it here because I was thinking basically "aibu to think they have lost their grip?"

Add message | Report | Message poster FishWithABicycle Sun 12-Apr-15 23:08:33
They haven't loss their way. They know exactly what they want:

Look after the richest 1%
Accuse anyone who cares about the other 99% as being envious.

A 1 million limit doesn't touch the 1%

Ptolemy I'm probably prejudiced as helping people avoid IHT is how I've provided for DW and DCs for most of my working life.

In this day and age a £!M limit is nothing.

X posted with just

No one should pay inheritance tax! It's like paying tax on everything twice and the amount of people I know who've had to sell their family home to pay the bill is shocking. If you are left the house, you should get the house. It's a ridiculous tax.

Why should anyone ever pay it?!!

Apparently it will benefit 22000 estates out of approx 3 million by 2020, so it's even less than 1%. I think there are a lot more people than that who would aspire to be in that number so he can spin it as a policy for the people, a bit like the way he announce a rise in the personal allowance in the same breath as the tax cuts for high earners.