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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Raising IHT threshold to £1,000,000 - because you're worth it...

231 replies

Figmentofmyimagination · 08/07/2015 08:33

There are so many reasons why this change is morally repugnant, socially regressive and economically illiterate, it is hard to know where to begin with this ....

OP posts:
Seffina · 08/07/2015 11:17

Fuck the children, if they want a fucking house they can go and earn one instead of waiting for mummy and daddy to pop their clogs so they can get one for free.

Ahem, sorry.

Austerity - it's the best.

longtimelurker101 · 08/07/2015 11:42

I really resent the "my parents worked their butts off and paid tax" etc etc argument.

The parents of a friend of mine sold their house in North London having been in it 30 years, the house had earned more than they had as a couple over that period of time. They obviously worked hard and paid taxes but this is totally unearned income, they have massively benefited from government policies over that time which have inflated the value of their house.

My parents live in the North East, they too have worked hard over the years, saved, paid off their mortgage etc. The house has increased in value, but no where near by the same value.

Sheer luck brings you a huge inheritance, to have it untaxed will simply mean that those who had the good fortune to be born into some sort of privilege will be easily able to extend that to their children, while those who didn't have that stroke of luck will be much worse off and find it much harder to get on. We end with a society where privilege not ability will dictate the lives of the majority, and the vested interests of the few will be put before those of the many.

The people who benefit from inheritance tax changes have not paid any tax for this benefit, their parents have benefited from the society in which these massive rises have occurred, their should be some contribution toward that society.

I live in London, my children will probably have to pay tax on what is left ( if house prices continue to rise). I don't mind this.

Its awful that in times where the poor, weak and vulnerable are being hit by cuts that the privileged are being given tax cuts, either we need to cut the deficit or we don't, you can't have it both ways.

But on Mumsnet, the "I am alright Jack, keep your hands off of my stash" crow will defend this to the end.

Shame that these people will also be hit by cuts, to public services, to the society around them which will become a lot worse. As I've said before, unless your vastly wealthy, you are turkeys voting for Christmas.

Sickoffrozen · 08/07/2015 11:43

I don't see the connection between hard work and a booming property market. People with IHT issues on property alone have just got lucky by being in the right place at the right time. Some were even given a discount to buy their house on the RTB scheme....how is that linked to hard work?

BathtimeFunkster · 08/07/2015 11:48

I think whining about having to sell a house to pay tax when you would still get hundreds of thousands of pounds of unearned money is so unbelievably greedy, entitled, and scrounging, that I'm amazed to see it from the people who hate such behaviour in people with zero chance of ever seeing that kind of money, ever.

PtolemysNeedle · 08/07/2015 12:35

Hi agree with this proposal. It's not fair that an elderly couple can leave a house to their children if they live up north but they can't do the same if they live in one of the souths expensive areas.

I don't think people should ever have to sell property to pay tax. Inheritance tax should be scrapped completely IMO and people who get an inheritance should be charged capital gains tax on the amount they receive instead of the dead persons estate paying tax on everything they left.

ReallyTired · 08/07/2015 12:46

"Hi agree with this proposal. It's not fair that an elderly couple can leave a house to their children if they live up north but they can't do the same if they live in one of the souths expensive areas. "

Up north the elderly couple house might be worth 50K. Down south an identical house might be worth 500K. Given that most people choose to sell the house rather than live in it, it is just cash to the beneficatories.

Maybe there should be a discount in inhertiance tax if one of the benefictories actually lives in the house. (Ie. an adult child who has moved back home to be a carer.)

SaucyJack · 08/07/2015 12:57

"Up north the elderly couple house might be worth 50K. Down south an identical house might be worth 500K. Given that most people choose to sell the house rather than live in it, it is just cash to the beneficatories."

Yes, this is true but those benefactories will also be trying to house themselves in a local market where houses cost 10x the amount they do up North. I'm not sure who it is some of you think are benefitting from the boom in the SE housing market, but it certainly isn't the ordinary person on the street.

Cumbria is looking more and more attractive everyday Smile

dreamingofsun · 08/07/2015 13:19

longtime - i agree, well with most of your thread except the last para.

i work my guts out and pay what must be 50% tax when you take NI into account. yet some lucky person could inherit a million, have done no work to gain it and not pay any tax. doesn't seem fare or logical

my other observation - looking at relatives on my husband's side who are all labour/maxist - distribution of wealth appears to be something they believe in, until it happens to them and they then will do almost anything to not redistrubute wealth and want to pass it onto their children.

Lasvegas · 08/07/2015 13:20

The SE is like a different country to rest of the UK from GDP perspective and cost one. There should be different IHT thresholds, benefit amounts and minimum wage for SE and rest of the UK

ReallyTired · 08/07/2015 13:27

"Yes, this is true but those benefactories will also be trying to house themselves in a local market where houses cost 10x the amount they do up North. I'm not sure who it is some of you think are benefitting from the boom in the SE housing market, but it certainly isn't the ordinary person on the street."

The benefictories could be living anywhere. Someone inheriting a million pound house without tax could buy a house up north for 50K. They could buy two or three small flats in the south east and rent them out. They would have a modest income and no housing expenses.

TTWK · 08/07/2015 13:55

The SE is like a different country to rest of the UK from GDP perspective and cost one. There should be different IHT thresholds, benefit amounts and minimum wage for SE and rest of the UK

That's the perfect recipe for making the gap between London and the rest of the UK even wider.

lalalonglegs · 08/07/2015 14:24

ozzia - I think the IHT on some assets including property can be paid in installments over several years. It's obviously very morbid to think about these things but might worth be checking out as you clearly have a very strong attachment to your childhood home.

fuckingfuckfuck · 08/07/2015 14:33

Always those that talk of hard work and paying your own way who are the most keen on getting homes and cash they haven't worked for.

YANBU op.

ethelb · 08/07/2015 14:44

I'm someone who should stand to benefit from this (if it stays the same for the next 30 odd years) and still find it morally repugnant.

It is unearned income that has not been taxed. Of course the lucky should pay their dues. It is part of living in civilised society.

UsedToBeAPaxmanFan · 08/07/2015 14:48

I'm with you, OP. It's morally reprehensible to not tax unearned income accrued through the rise in property values, whilst imposing swingeing cuts to the benefits supporting the most vulnerable people in society.

ethelb · 08/07/2015 15:36

We tax income quite heavily in this country, particuarly for low income earners, but tax wealth lightly. It was ever thus and why we have such low socio economic mobility.

OfaFrenchMind · 08/07/2015 15:45

"Bouhouh, my parents cannot give me money or Inheritance, so I guess nobody should get anything either. There, that will show them! If I am miserable, everybody else should be!" MN hosts quite a lot of bitter miserabilists...

fuckingfuckfuck · 08/07/2015 15:51

There are plenty of people who stand to do very well from these plans who still find them reprehensible.

As evidenced on this thread.

Not everyone who is rich, or expects to get richer, is a selfish arsehole. A fact that continues to stagger many idiots on mumsnet and elsewhere.

GoodbyeToAllOfThat · 08/07/2015 15:55

I wholeheartedly support this. Why shouldn't anyone be able to accumulate something over their lifetime to pass onto their child?

This is what keeps a lot of people economically active in their later years.

Downtheroadfirstonleft · 08/07/2015 16:00

Moral repugnance or just jealousy OP?
BiscuitBiscuitBiscuit

ethelb · 08/07/2015 16:05

I can only conclude those arguing people against this are jealous haven't read the full thread.

OfaFrenchMind · 08/07/2015 16:10

Or maybe, they do get that it is morally reprehensible to force people to sell a family home when their parents die, because the inheritance tax is grossly exaggerated.

Nettletheelf · 08/07/2015 16:10

This is a good example of a policy that will appeal to a particular section of people (readers of the Daily Mail and the Daily Express come to mind...interesting how mentioning the word 'children', as in 'passing your house on to your children' apparently neutralises any accusation of selfishness) but actually doesn't mean much.

People living in a valuable house are far more likely to have to sell it to meet care home fees than they are to pass it on to their children. So removing some houses from the IHT net is pretty meaningless.

OfaFrenchMind · 08/07/2015 16:14

Nettletheelf this Daily Mail reader accusation is getting older every time somebody uses it...

GoodbyeToAllOfThat · 08/07/2015 16:15

Frenchmind has beat me to it. Can the socialists please find their new meme sooner rather than later?

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