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?

Iggly - they wont be able to pass the cost on to renters if there is rent control as I have suggested. No one measure in isolation will work to rebalance this market. its going to need a number of them and some patience. Far harder to suppress turnover than profit especially if you want to stay in business, which lets face it most businesses do.

too many properties are under occupied. whether thats because they are holiday lets sitting vacant half the year or because you have single people living in bigger houses. People have been encouraged to believe that the house that they are in is a "home for life" both in social housing and private. It isnt and it shouldnt be. its one property on your life time journey. I started in a rented flat, one bed owned flat, 2 bed owned flat (with lodger) house, bigger house and pretty soon will be selling bigger house for smaller house, then smaller bungalow then who knows what. Building or providing a mix of different houses in the same area means people can stay in the locality but have a house that is size appropriate.

I can only assume JC is deliberately trying to make himself unelectable. I wouldn't want to be running the Brexit car crash either. He should just say "I'm going to take everything off everyone" and be done with it.

Justanotherlurker - so instead of thinking big and taking on the corporations, we tax the smaller/medium businesses to cover the costs of things.

of course it wont be easy and they will resist it, but so what!! why does the international community have to agree to it. if its a tax on turnover in this country then businesses not based here but selling/doing business here will still have to pay it.

we need something big and bold.

A company can have a huge turnover but make a loss. Whether or not they are profitable will depend on their margins and that varies from industry to industry.

Where did you hear this OP? Please can you post the link. No offence, but this sounds like fake news/bullshit to me.

The other day so wine was saying TV licenses were being 'taken away' from over 65's, turns out it is for the more wealthier OAPs which isn't quite all over 65's as they made out!

Far harder to suppress turnover than profit especially if you want to stay in business, which lets face it most businesses do

Well all businesses do. The risk of taxing profit is that what happens if you make a genuine loss and have to also pay a big tax bill? Eg at the start of a new business?

I have no issue with more stringent tax on businesses - I don’t think a switch to turnover is the magic key. It’s about government appetite to tax properly and they could do that on profits. As said, it’s about having an international approach to tax especially, as we are repeatedly told, we operate in a global economy.

If we had more social housing, we wouldn’t need rent controls. Personally I’d prefer more mixed social housing which was open to a greater proportion of the population (as it was in days gone by), which means moving more homes back into government ownership. This would also have the added benefit of having more mixed communities instead of ghettos of rich vs poor, for example.

I want all areas to have chances for people to prosper and that won’t happen with no mans land estates etc.

*someone, not "so wine"!

I mean the risk of taxing turnover 🤦🏻‍♀️

I'm not against it but I think it would be hard to "police". We've had probably close to that amount from dh's parents already as have his sisters. However I have no idea of exact amounts and I doubt they do either because a large chunk of it has been in cash. The only bit we could easily prove would be the sum they gave us for the house. Given that they do virtually all their transactions with cash trying to figure out was a "gift" and what was their weekly shop from their bank accounts would be a nightmare.

Also from reading the report, it implies that say my parents have nothing to leave, dh's parents could essentially gift me another £125 000 if I wasn't going to inherit anything else. Not to mention the fact that I'm a sahm who doesn't have an income of her own so surely the first £11 000 (roughly) per annum should be tax free on top of the £125 000?

After all, what classes as a gift? We're all off on holiday soon with dh's parents, siblings and their families. PiL have paid for the hotels, will pay for the meals, most of the days out and will give all the kids a couple of hundred pounds worth of spending money (entirely their choice, if we pay, we find cash shoved into pockets later often for a higher amount). Is that a gift? Would that count? I suspect it should but I don't see a way of ensuring it does without intruding too much into people's lives.

Monsterinmypocket

It’s not a Corbyn policy, but right wing press have been presenting it as such today - almost like they want to create a bit of a distraction from something?

Monbiot’s report came out earlier this month (Farmer’s Weekly was reporting on it 10 days ago) and the proposals for changes to inheritance tax were published over a year ago. Didn’t seem to create much of a stir then though.

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

www.resolutionfoundation.org/app/uploads/2018/05/IC-inheritance-tax.pdf

He means well and I see where he’s coming from. In theory it would be good to minimise privilege of birth.

However, it flies in the face of people’s basic instincts and how the world works. Plus how could it be policed?

This should be filed under ‘unworkable’ and he should come up with something smarter to achieve his aims.

A tax on turnover rather than profit would be utterly ridiculous, lol. There are a number of people on this thread with very limited understanding of economics!

After all, what classes as a gift? We're all off on holiday soon with dh's parents, siblings and their families.

Tax law already distinguishes between money spent on dependents out of income and distribution of assets - however I agree it's difficult to police.

(Dependants!)

dongdingdong - why? I run a very successful business so think I have a pretty good grasp of economics. disagree with me by all means but just saying ridiculous lol is a pretty poor argument up against it isnt it.

I'm not sure why then you would have a tax on turnover rather than profits? It wouldn't be possible to tax both.

A land tax is more equitable if implemented properly for both council and business rates.

Watching the Conservative Party debate on Channel 4. Not one of them has a policy beyond "Oh but Jeremy Corbyn...". Are people so blinded as to fall for this?

(And for the latecomers, the OP's post is bollocks. A lifetime gift tax is one of several measures discussed in a research document on reforming IHT. It's not Labour policy nor is there a suggestion that it would be.)

@Zipee Be careful mentioning the land tax, remember how people blew that out of all proportion at the last election.

People are just too willing to blindly accept what biased media sources want to feed them.

Is it £125k divided between all your children or £125k per child?

Its been stated a lot on this thread that this is not actually policy.

But the rage keeps flowing.

Wonder why this was brought up by the national news media today?

Snog 125k per person.

I run a very successful business so think I have a pretty good grasp of economics. disagree with me by all means but just saying ridiculous lol is a pretty poor argument up against it isnt it.

I’m amazed I have to spell this out, but fine. Turnover is almost irrelevant to a business - it’s profit and profit alone that counts. There are many businesses which, by the nature of their business model, have high turnover figures but low profits in comparison. How could they even afford to pay tax on turnover? It would cripple them! Far better to close any loopholes that allow businesses not to declare the true extent of their profits.

And as someone who runs their own business, I’m amazed that you want to penalise small business owners by lowering the VAT threshold, rather than taxing the big corporations like Amazon, Google etc properly. Very strange logic.

Oh, and here’s seven more reasons for you: theconversation.com/seven-reasons-why-taxing-company-sales-instead-of-profits-is-a-non-starter-54263

The understanding of economics isn't actualy very strong.

Is it £125k divided between all your children or £125k per child?

So hugely disproportionate tax for those families with one or two children.