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?

Trouble is it’s £3k a year.

None of this tackles the super wealthy (individuals, businesses or corrupt regimes) using tax havens and simply hiding their money, or setting up complex structures to ensure their money is only taxable in the regimes with the lowest tax rates. You need international agreements for that and less high level corruption. Until then, these proposals do fuck all to deal with where all the serious wealth of the world, whether hidden by governments, businesses or individuals, is actually sitting. Set a better example at the top of society if you want everyone else to follow - these reforms are not hitting those at the top, they merely impact on those with some wealth, but no power and no influence, not enough cash to pay advisers to hide their cash for them (or ensure legislation is drafted so as to ensure a few mates' loopholes), and no diplomatic bag to hide all their cash in. I'm afraid I don't really trust pigs with their snouts in the trough to make a fair stab at this. It's just fiddling about with small change and making a few more puppets jerk about on strings to the amusement of those who remain unaffected. Tbh, it's a bit like climate change - these proposals are actually too pathetic to deal with the real problems, a bit like turning your thermostat down a degree in the expectation this will stop the polar ice caps melting.

This country offers fair and free, generally decent education to all. All of us are given the same basic opportunities. All of us are entitled to that education and to use it to better ourselves and do A-levels and Degrees, to learn a trade or to learn skills through NVQ's and get a better standard of living.

Are you my FiL?

It's not that simple. Parental drug issues, attachment problems, mental health issues, homelessness, certain schools, peer pressure, no support at home etc can all have a horrific effect on attainment. A lot of the people I supported had all their drive, their belief in themselves crushed out of them by the system long before they ended up across a desk from me. More than one of them felt prison was the safest answer because after a life time of institutions they couldn't function by themselves. Their childhoods played a huge part in them reaching that point. We need more social workers, more peri-natal support to families struggling with mental health issues and more teachers as a minimum. Housing also needs looking at, we used to build spacious airy social housing with lots of green areas, we need to do that again. How can people be expected to be proud of their environment when there is always someone pissing in the multi storey lift? How do you get to University when drugs are easily obtainable, when studying is belittled and getting away from your stepdad is your priority.

If we are all given the same opportunities why is the biggest indicator of a child's income that of it's parents.

Claiming equality of opportunity allows you to carry on with the self attribution fallacy, it isn't accurate.

Claiming equality of opportunity allows you to carry on with the self attribution fallacy, it isn't accurate

Exactly.

Another stupid Corbyn idea to redistribute wealth. We work bloody hard to buy our house in UK and a holiday home in France and our savings and investments and when we die we want to leave the proceeds to be shared between our children when they are older as most parents also want to do. A real vote loser Corbyn.

Yet its not a Corbyn policy?

Lurker, you don't think that on the day the Tories had their hustings that two or more anti Corbyn threads turned up is suspect?

No because people like you have been all over any hint of anti left posts giving whatabout, ignoring the out and out anti tory threads and those that are cloaked under the faux innocence.

The astro turfing on mn is an issue on MN, but it's not done by any right wing tory group. So much so that even a hint of a pro conservative thread is considered goady and/or paid trolls.

Most lurkers can see this, and it's recognised across the internet so I am not really being controversial in my point

For starters lurker this thread has been started about something that isn't even Labour policy or something that has been proposed by them yet its being attributed to Jeremy Corbyn, that seems to be "interesting".

Perhaps an experiment is in order

Corbyn should impose this on any MP, Member of a devolved assembly, Lord accepting the Labour whip. If the top earners in the Labour party are happy trialling it before they get into power then they can propose the idea for everybody else.

So it isn't actually about stopping you giving more that £125k to each child, just that you'd be taxed on it, like your estate is taxed with inheritance tax anyway. People with large numbers of children might find this would work to their advantage!

Do people think that anything over £125k just won’t be allowed?

Idiots

Thanks Continuity. I will try to find the time to have a look.

I do think people will just find other ways to gift, if this is the case. It's pretty hard to monitor.

Brilliant idea. IFAs, accountants and tax lawyers could do with the work.

Do people think that anything over £125k just won’t be allowed

No. But there are so many ways of getting round it that it would be really not worthwhile for anyone who wanted disperse funds
If only transfers of £3,000 are added up then £2999.99 transferred daily would mean that someone could spend years transferring just under £3,000 and attract no tax.
Otherwise every £2 transfer that you give your children to pay for bus fare, school dinners etc could be added up. The man hours would be ridiculous.

Of course its not going to be hard to monitor.

Anything less than 3k which is the current yearly limit wouldn't count.

Or is it too hard to monitor the current law?

If 2999 were transferred daily then it would be taxable now?

So what would the cutting off point be.

I transfer Dd definitely more than £3,000 each year. This year alone she has paid for an Airbnb and other big items out of her account which I then reimburse.

What happens when that sort of thing happens.
If Ds pays £10.50 on a few bits and pieces when he is out and I transfer him £12-£13 would that mean that the £12-13 be counted towards the £3000 per year?

How about I give my goddaughter money and her father gives my son money.

The accountants would be on it like shit off a shovel ! It’s too simplistic and human nature is too greedy .
I’m not sure how we can make society fairer ! Taxing some people more and some not at all isn’t the answer as it just breeds contempt.

He also plans to take back all land into government ownership so they can build on larger gardens etc. I'm not even sure how that would work but it would probably tigger a property crash but no one would want to buy property again.

Labour would be far better to create a income for everyone and tax the excess. It would take out any emotion about benefits and people could live and retrain on a decent income.

There are no current taxes on gifts, apart from gifts into Trust which exceed Nil Rate Band

Gifts exceeding £3k a year are subject to IHT if they’re made in the last seven years of life and the estate exceeds the threshold.

Any gift over 3k is taken into accoubt as part of your estate for inheritence tax.

The stuff about "all land into state control "is rubbish.

He also plans to take back all land into government ownership so they can build on larger gardens etc

Really? You have a link that explicitly states that then?

There are no current taxes on gifts

But gifts do count against the value of your estate - hence the £3k annual exemption.