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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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

797 replies

Figmentofmyimagination · 12/04/2015 23:00

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

OP posts:
GentlyBenevolent · 16/04/2015 18:33

I'm always slightly Hmm about people who are so certain that they'd have been magnificent successes had they chosen a different career path (the 'I'd have made so much more if I'd gone into x' argument). Well, maybe you would...and maybe you wouldn't.

woodhill · 16/04/2015 19:31

why, it's where I was born. I live within the M25 so not London. It's not paved with goldSmile

Figmentofmyimagination · 16/04/2015 19:41

why, it's where I was born. I live within the M25 so not London. It's not paved with gold

Try thinking of it as a lump of cash rather than a house, since you won't be living in it once you are dead.

OP posts:
Philoslothy · 16/04/2015 19:41

Lots of people can't afford to buy in London. If you can afford to do something that a lot of people can't - that is priveliged.

woodhill · 16/04/2015 19:42

I think of my house as a home.

Apatite1 · 16/04/2015 19:51

I'm always slightly about people who are so certain that they'd have been magnificent successes had they chosen a different career path (the 'I'd have made so much more if I'd gone into x' argument). Well, maybe you would...and maybe you wouldn't.

Yes yes. In my head I'm a world famous neurosurgeon to the stars, with my Lear jet and million pound salary. In reality I'm a lowly nhs haematologist who has the shittiest office in the building Grin

Figmentofmyimagination · 16/04/2015 19:54

I think of my house as a home.

I also think of my house as a home, and it too is worth around £500,000, but I don't imagine my two children rocking around in it after I am dead. I hope they will have moved on and built their own lives.

OP posts:
GentlyBenevolent · 16/04/2015 23:57

I dont often agree with the spectator but I agree with this blog blogs.spectator.co.uk/coffeehouse/2015/04/if-cameron-really-wanted-to-encourage-home-ownership-he-would-increase-inheritance-tax/

Peanut15 · 17/04/2015 07:05

Gently - they just contract farm or FBT it out both of which qualify.

Binkybix · 17/04/2015 07:15

What's FBT peanut?

GentlyBenevolent · 17/04/2015 07:27

The land is still farmed. Which makes them proper farmers in my book. It's not like they can qualify for APR by turning their fields into diggerland.

OnIlkleyMoorBahTwat · 17/04/2015 07:31

When talking about assets and what is affordable, saying a house in London is 'just a house/home' is like saying a Ferrari is 'just a car'.

Just like only a tiny percentage can afford a Ferrari, owning a house in London makes a person in the top few in terms of wealth, whether it is current earnings or assets if the property is owned outright and that wealth has been obtained by the increase in value over the years.

woodhill · 17/04/2015 13:19

you could argue that people have to live somewhere and are paying a mortgage on taxed income. I am grateful for my home but we have really struggled financially at times. Government policies have caused the spiralling of prices and my dc also have to pay for university etc.

I don't feel at all guilty about not wanting the state to profit from it and would do all in my power to prevent it.

especially with all the expenses that politicians managed to claim on 2nd homes etc.

GentlyBenevolent · 17/04/2015 13:25

If more people paid IHT perhaps fewer people would have to pay university fees. In fact, Labour are proposing to use reduction/removal of tax relief on the pension contributions of those earning > £150K to reduce uni fees. Whereas the tories are proposing to use that money to increase the IHT threshold. So you are being not only selfish and greedy but foolish in supporting the increase in threshold.

woodhill · 17/04/2015 13:37

I know we would never get any help for uni for our dc so I will carry on being 'selfish' .

GentlyBenevolent · 17/04/2015 13:42

Well, if Labour win the election their fees will be reduced by 1/3. How much help, exactly, do you expect? And it's selfish not 'selfish'.

GentlyBenevolent · 17/04/2015 13:46

For clarification - I would contend that it's selfish (rather than 'selfish') to support a move which might (but probably won't) result in your own kids having no university related debt and other people's kids (possibly more deserving by any number of criteria and certainly on the 'lack of wealth' criterion) having the debt levels seen under the current government, at the expense of a move which would see everyone's kids having their debt reduced by at least £9K. That os most definitely selfish rather than 'selfish'. Also greedy, grabby, other words not necessarily beginning with G...

woodhill · 17/04/2015 13:56

I totally disagree. we are not grabby and have always paid our way. ideally it would be good if everyone's dcs could go free.

GentlyBenevolent · 17/04/2015 13:59

What exactly is not grabby about looking at a proposal to spend a defined chunk of money where everyone's child will benefit and saying no thanks, I prefer a proposal to spend that chunk of money where massively fewer kids (but definitely mine) will benefit? It's the definition of grabbiness.

woodhill · 17/04/2015 14:00

the whole thing is so pi in the sky anyway but I think a lot of dc will have debts from uni and have to pay huge amounts for housing so will need the inherited wealth. tbh it will probably disappear for nursing care anyway.

woodhill · 17/04/2015 14:03

I just want to pass my money to my own or their dc not the government.

woodhill · 17/04/2015 14:04

also labour waste so much money and I would never trust them.

OnIlkleyMoorBahTwat · 17/04/2015 14:15

Who do you propose pays for all this 'free' university tuition woodhill?

I believe that the current system where the graduate pays based on their future earnings is the fairest way to do it as the person who benefits with a higher salary due to a graduate job is the person that pays.

The great flaw in this system however, is that graduates that do not earn enough to repay their tuition fees, either by choice or circumstances, effectively have their educations paid for by others, so the system is not perfect.

By reducing tuition fees, they are pushing costs back on the taxpayer, as I think that even the current fees dont' cover the actual cost of providing a university education, although I am prepared to be corrected on this.

I'm not sure that 'help' with education past 18 is something that people should expect from the taxpayer TBH, perhaps with the exception of courses that benefit public services such as medical staff working in NHS hospitals. After all, its another 3 or so years of opting out of being a taxpayer, while still using public services.

In fact, I would like to see more employer funded higher education. Person gets a job with an employer aged 18 and within the next few years they study for a degree paid for by their employer, while working at the company as an undergraduate engineer or whatever the rest of the time. Fast forward a few years and the company has a qualified graduate employee with several years’ experience working for them.

But I’m straying off topic now, but it’s still the fact that the government doesn’t have enough money to pay for everything that the country wants, so anything that is effectively a tax cut, whether it be a reduction in inheritance tax on the estates of the most wealthy, or reductions in university tuition fees, needs to be paid for by cutting services elsewhere, or raising taxes elsewhere. And it is a little hard to justify cutting taxes for the most priviledged at the expense of the less well off.

PigletJohn · 17/04/2015 14:23

Shock news!

Tories announce tax cut for people who are likely to vote for them!

After tax cuts for the rich, perhaps they will offer free doughnuts for the obese.

LotusLight · 17/04/2015 15:48

Indeed onI.If a child picks a degree which will never make them any money as they want to contemplate their navel for life whilst meditating then they get their university education free. If they work hard and become tax payers for 40 years their university education costs them a fortune! only in topsy turvy UK would that be so.

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