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?

I try not to use my own circumstances publically.

As I said we don't know enough about this, I would imagine that there would be exceptions and it wouldn't be a blanket rule.

I can grasp the possible implications if it is. But again I haven't seen enough of the Resolution foundations information on this.

There are already ways to ensure chidren who will be unable to care for themselves in future will not be hit by inheritance tax.

Why not close tax loopholes for the likes of Google and Amazon, rather than making life even more difficult for sole traders and small businesses?

The EU tried to impose some merits on this, but Ireland and Sweden where the first to go against it and others followed suit.

So far the UK and Spain are leading the way on introducing measures

As others have observed, the losers will be the schmucks caught in the middle.

I can't disagree that it seems unfair that a lot of the older generation have benefitted massively from house price inflation. There is a house for sale in my road for £925K that the owners paid £32K for 35 years ago. It seems to me only right that some of this unearned bonus should be diverted to the public purse.

All the plans for land value tax etc do not take account of WHEN a property was purchased. Dh and I are flogging away to pay a mortgage on a house that was certainly not £32K (nor is it worth £925K! Much meaner property altogether!). In fact looking at what we would pay in LVT we would have to sell the house as we couldn't pay. But nobody could buy it as they couldn't pay the LVT either, therefore rendering the house much cheaper and so we could ask for our LVT to be lower .

So far the UK and Spain are leading the way on introducing measures

That’s good to know Justanotherlurker

The reason why tax loopholes havent been mentioned is that this proposal came from a resolution foundation report on how to solve intergenerational inequality.

125k means that an average person would inherit the average amount, be able to have been given the average amount for a deposit by parents and still have more than 40k left over.

As others have observed, the losers will be the schmucks caught in the middle.

Precisely.

How many people would actually be able to afford to gift £125k to their kids?

Funny how the Resolution Foundation report outlining these ideas was published in May 2018, but it’s only today that the right wing press is making out that this is Corbyn’s Big New Plan?

Almost like they’re trying to deflect from something else going on.

I hope he wants to increase tax in everyway poss to give it to everyone who doesn't work for whatever reason. That would even out social inequality.

Almost like they’re trying to deflect from something else going on

From the shit show of a Boris Prime Minister

It’s not a general election. JC has no current chance of being in power.

Why all the JCbashing....

It’s a bit diversionary.

hope he wants to increase tax in everyway poss to give it to everyone who doesn't work for whatever reason. That would even out social inequality.

A true corbynista.

Lifetime gifts of 125k, so this means adding up any sums of money given to children over their lifetime as well as anything given for inheritance. Firstly not sure how they would regulate a lifetime of giving to a child, will this include university fees, school fees, buying a first car, money for a wedding, holidays etc. 125k is not an awful lot if we are talking over a lifetime. Yes there are many who wont meet this threshold but I think it needs better thinking that just a 125k lifetime threshold.

The devil is in the details though.

This policy suggests that if DH and I were to die in an accident, despite our life insurance paying out to clear the mortgage on our house, our toddler DD would be left with no parents, no family home, no income stream to cover her immediate living costs and an inheritable sum of £125,000 when she turned 21... some 19 years away.

Fuck that.

I'd never leave my child so financially unprotected.

@AlaskanOilBaron

Since the 1980s, we’ve had neoliberal politics in place. The conservatives and new labour pushed the idea that business was king and they continue to do so.

Even when the banking crisis, caused by rich cocky bankers, brought the world economy to its knees, there was still the cry that banks were “too big to fail” (which was never fully explained). So they were propped up. At the expense of most ordinary people.

There’s a myth, a pervading myth, that trickle down economics benefits everyone.

We’ve been trying this for decades.

And yet we still have awful inequality despite being an incredibly rich country.

Where’s the wealth?

An alternative is needed to capitalism. It doesn’t have to be socialism - who says that socialism is the only alternative.

But I am sick of people shooting down policies which at least try and address rising inequality without offering any alternatives.

Zippee I have read the whole report and as it progressed I felt as I was travelling back in time to the USSR. It is unworkable and can’t really be enforced unless there is something like a central goverment list of what everyone owns with some bod at the helm that can designate who gives what to whom. You may as well go the whole hog and give everything to the government to control in true socialist style. Cos that works really well rolls eyes

If Corbyn gets in then everyone should stop working as he'll look after us 😂

an inheritable sum of £125,000 when she turned 21... some 19 years away.

Your DD would not be left with “an inheritable sum” of £125k - she could inherit £500k or £100 million, just the way it is taxed would be different.

It’s a proposal, a way of prompting some thought towards a more equitable inheritance tax system.

Wouldn't this be large cash sums and property

That would be easier to check id have thought

How many people would actually be able to afford to gift £125k to their kids?

It includes inheritance, so quite a lot of people with only one child who own a property with £125k of equity in it.

It includes inheritance, so quite a lot of people with only one child who own a property with £125k of equity in it

As a proportion of the country’s population I mean

"Back in time to the USSR" utter hyperbole.

, i read the while report and thought it was quite egalitarian. Of course we already have ways of recording what people own, and also have to declare where large amounts of cash transferred to us come from. Else how is the 3k per year law enforced ?

Also I read the £125k as a threshold for tax, not that the state would take everything above £125k.

It’s funny - the press portray a lot of Corbyn policies as massively left wing but they really aren’t that far left. He’s not suggesting everyone earns the same etc etc.

I also would like to hear any alternatives to addressing the massive inequality in this country?

So many people have died due to austerity.

Let’s hear some alternatives to address this.

We would be impacted by this. I’m not necessarily against it, but would need to know all the detail- e.g. would SIPP inheritance rules change or life policies held outwith the estate. How does the detail compare to inheritance tax? If that were clear I’d be able to form an opinion but so far I’ve not seen enough detail about it.

I agree.

Lets have some alternatives for improving inequality?

Everything suggested from slightly higher taxes for the top 5 percebt, to ingeritance tax, higher corp tax gets attacked.

Or are you happy with the status quo because it benefits you?