Jeremy Corbyn wants to impose lifetime gift limits on children of £125,000

[ForTheLoveOfDoughnuts]

So we pay tax on what we earn. What we buy. And now this.. what's the point of working hard to help out our kids, for this to even be considered. Or AIBU?

The NHS is one of the most cost-effective health systems in the developed world, according to a study (pdf) published in the Journal of the Royal Society of Medicine. ... Among the 17 countries considered, the United States healthcare system was among the least efficient and effective.7 Aug 2011
www.theguardian.com › aug › nhs...

Iggly - I think we need to prioritise looking after those that really need help and support.

Free education and healthcare for all too.

Vote for me

Free education and healthcare for all too.

Great in theory - but in practice how are you going to pay for that?

I think we need to prioritise looking after those that really need help and support

I think the state should act as a safety net to all that need it and it should invest in the infrastructure of our country be it economic, education, basic support services etc.

I also believe that the state is not the enemy and neither is the private sector. They need to work together. They serve different but mutually beneficially purposes.

The thing that bugs me is that critics of Corbyn can only throw bullshit insults about socialism etc without offering any concrete alternatives.

I’m all ears!

Great in theory - but in practice how are you going to pay for that

We manage to provide it at the moment. Funded by tax.
We also managed to fund a big fuck off bank bailout - which I’m waiting to see the benefits of.

Let’s hear some alternatives to address this.

How about closing tax loopholes so companies like Amazon and Google pay their fair share of tax, for starters? I’d also be in favour of higher taxes for the top 5% (or maybe 1 or 2%) of earners, as I think somebody else suggested.

In answer to points backalong - if you say your house is a holiday home (not vacant waiting for sale or rented) then you are exempted from council tax and expected to pay business rates because it is a business letting property. But, the threshold for Business rates is £11k rv which most single properties (and in most areas you need to own 3 or 4 holiday cottages) fall under this rate so you are exempted from business rates as well. Therefore rich person owning a holiday home in Cornwall, Wales and the Lakes pays nothing into the local council - for bins, schools, lighting etc. Same for student lets. students are exempted.

with regards to cash in hand payments, make it illegal and enforced by either the local authority or the police. it is a massive economy and remove the vat threshold then everyone in business doing business will be paying equally into the system. Dont underestimate the number of workers who dont pay vat and/or also get cash in hand.

And yes, of course I agree with taxing google and amazon absolutely. once we are out of the EU I would expect to see this brought in. But the biggest anomaly is business rates. The floor area taxation on a business is way out of date. In the 1920's you owned a factory it produced X amount of goods. you doubled the size it sold 2X so fair enough. but now you can have a large floor area business turning over a very small amount and a tech company operating in a cupboard turning over 100 times the amount and still only paying a fraction of business rates. The tax system needs to be reviewed in its entirety, not tinkered with at the edges.

You can tell most posts haven’t read the original report. It’s here for those who are interested.

landforthemany.uk/wp-content/uploads/2019/06/land-for-the-many.pdf

The actual proposal is interesting. After the £125k, gifts would be taxed as income. The whole point is that people are taxed more on labour than on wealth.

Currently lots of wealthy people make gifts that are never subject to inheritance tax. It does make sense to try ans close that loophole in some way.

Once again, cash in hand payments are impossible to police or enforce. Who’s going to stop me handing the window cleaner £15 in notes? And the other 50 houses on the street that do the same?

Closing tax loopholes to corporations doesn't mean that individuals aren't benefiting from large unearned income though.

As previously said most people will never come close to even reaching the threshold

Higher taxes for the top 5% is fine by me.

I have no issue with paying more tax on any gifts over £125k either. It’s just another way of targetting wealth especially that gained through property price rises.

"especially gained through property price rises".

People tend to forget that this is untaxed, and also unearned. Your property doesn't double in value because of things you hsve done to it.

The stupidity on this thread is staggering, frankly. Are you really so unable to distinguish between reality and Murdoch propaganda? It’s staggering to me.

This report is referring to an IHT loophole that enables people to gift vast chunks of cash to their children while still living to evade IHT. And it’s not Labour policy, it’s something they’re taking into consideration.

Last GE much of the country was parroting the line that the Labour Party was unelectable and yet they still had the biggest gains in nearly a century and we were on the brink of a hung parliament. Good luck trying that again.

And those talking about children with additional needs - do you honestly think our kids will be better off under the tories and BJ especially? You’re delusional.

And your point is?

It’s not hyperbole. Take it to it’s logical conclusion - for it to remotely work it would have to be centrally controlled regarding what is given to whom with outside overview on what you can and can’t do. Socialism works under the principle that the state should basically control resources and how it’s distributed and this would fit that bill. If you believe in state owned resources fine, but remember that you would also lose anyone’s impetus to do anything to generate this lovely cash you want to redistribute.

That was to @Zipee.

So because you think cash in hand payment bans are impossible to enforce that then is the reason for not banning them?

carry that logic through and there would be an awful lot of things that were not against the law just because catching people would be difficult.

why is it socially acceptable to do this? its not small potatoes, its a lot of money. and we need to tidy up and reform the WHOLE system not tinker with bits here and there. we need to be much bolder and more sweeping in the changes.

Take it to it’s logical conclusion - for it to remotely work it would have to be centrally controlled

Er that’s how our tax system works at the moment. It is controlled by central government

The Tories are notorious for taking control centrally. They hate local government.

There’s zero point in unenforceable bans. I see no problem in paying the window cleaner cash while one of the richest men in the world doesn’t pay tax.

I assume it would mean a movement from people giving money to their dcs to paying for things directly, eg not the university fees bill coming to the person studying but an option for the bill to go directly to their parent who pays it, without the money ever being gifted to the adult child. Same for rent, house deposit money, holidays paid for, childcare costs etc.

It will only those who dont expect to hit the total so dont plan for it, who would pay the tax, those who expect to hit that amount one way or another would start planning for it from 18.

We manage to provide it [free healthcare and education] at the moment. Funded by tax.

Higher education is not free. And social care funding is minimal.

With an ageing population then lower tax takes and higher numbers of social care and health care users is going to be a problem.

Higher education is not free. And social care funding is minimal

You quoted about healthcare and education.

As it is, I think taxes should go up and investment needs to happen for education and social care. Under funding it just creates more expensive problems later on down the line.

OrdinarySnowflake

Money towards education costs would not be included in the proposal.

House deposit sums provided by parents currently have to be declared under anti money laundering laws, and mortgage companies are generally keen to know who has a lien on the property, so I’m not sure how you would get round that.

And parents could still gift up to £3k per year each. Lucky children to have parents able to gift money to pay for their holidays and cars.

Yes but once you have paid your tax that’s it. There is an event of personal control. This is taking it to a whole new level - and who says it would stop there. That’s what is often forgotten. John McDonnell has said a labour government will be the staunchest ally of Cuba’s communist regime. As I say if you feel the same way, be honest. Just don’t dress it up