To think post covid19 would be a good time to completely overhaul inheritance tax?

[DogsDinner]

I know a couple of only children who are likely to inherit the best part of £750,000. Other families where the kids will inherit hundreds of thousands each.

Not a penny tax will be paid on this money.

I also have friends who will inherit nothing, indeed will probably have to scrape together the money to pay for their parents’ funerals, and in turn are unlikely to be able to leave much to their children.

AIBU to think that people who have probably already had a very good start in life, should not then go on to be further advantaged by inheriting such staggering sums tax free?

I’m not a socialist, and I do think parents should be able to leave their children something, but surely it should at least be taxed?

It honestly seems to me to be the obvious place to start raising money as we try to repair the damage to the economy.

You need to hold a carrot out to people to save for their future rather than spending everything so that the state ends up picking up the tab.

If there is no carrot of being able to pass wealth on after your death then people wouldn't save as much. Yes some of those savings may well end up paying for care but that is why the carrot works because some may be left after you die so lots of people choose to save and make wills to leave it to their family.

I think people who state that all money should go to the state after death choose to see it in a very black and white way rather than actually considering that this would alter behaviour and ultimately not in the way they think.

@OnlyFoolsnMothers while India may have officially banned foreign investment it still happens in practice, you just have to pay a small bribe. Re taxes and rents if you increase taxes you reduce the landlords bottom line and something has to give. In some instances that may be the land lord taking a hit but it’s more likely to result in higher rents or poorer quality properties. Taxes for landlords are already fairly onerous, increasingvthem further wouldn’t be a good idea.

How about "working hard" at school to get good qualifications which open doors to better paid jobs? Some of us couldn't stay at school because we were born into poverty and had to get jobs to help support the family. I'm in my 20s so it wasn't that long ago.
How about "working hard" in the workplace to gain promotions/skills etc to get better paid jobs? I did just that from starting in a minimum wage job I'm now the manager. But they can't promote everyone can they? I understand I've been very lucky to have that opportunity. Others have worked just as hard as me but haven't been as lucky.

How charmed your life must be to not understand that.

@ottilie because it was already taxed from the parents wages

Do you honestly believe that any additional tax from iht would go to making life more balanced and comfortable for the general population? With a Conservative stranglehold on the country's politics? Going on past experience? Once earned and tax paid, it's ours and our family's asset. We will do with it as we see fit, within the law, including making our children's lives maybe a little bit easier than our own, growing up in poverty and struggling.

so we’re banning private schools, private medical, first class travel ?
Corbyn is that you?

Why hello Mr Straw Man. We’ve been expecting you!

If you did that, very few people would bother working long hours in well paying jobs. Why bother trying harder if your kids are never going to be able to benefit from any of your assets after you have gone? You might as well rent, buy loads of holidays (so the money will land in the hands of other countries) and have little enough that the government have to pay for any care that you need. It would really stop people from working hard to get a good education or job

People are driven by more than just passing money down. Status, comfort and enjoyment in their own lives, the reward of doing a good and challenging job. Be good to see your evidence base on this assertion.

while India may have officially banned foreign investment it still happens in practice, you just have to pay a small bribe there will always be flouncers to the rules, doesn’t mean you don’t implement them.
Or you think it’s ok for. Eg investors in Hong Kong to buy flats in the U.K. and leave them empty to increase in value and flog in a few years?

I think people who state that all money should go to the state after death choose to see it in a very black and white way rather than actually considering that this would alter behaviour and ultimately not in the way they think

Another straw man. I’ve not seen anyone here argue that all money should go back to the state.

Everyone would blow their cash before they needed care and the government would have to pay for everyone... the system would crumble

This doesn’t really hold up. Very few estates are hit by IHT now and the system is crumbling

Once earned and tax paid, it's ours and our family's asset. We will do with it as we see fit, within the law, including making our children's lives maybe a little bit easier than our own, growing up in poverty and struggling

Which is why some people advocate a change in the law!

Why hello Mr Straw Man how is it a straw man argument. The issue with Inheritance seems to be if gives some people an unfair advantage, well sorry that happens in many aspects of life.
As someone pointed out, if the main issue is the vast sums of profit made from increased house prices why not advocate a tax on profit from selling any/ every home?

@binkybox You do like the sound of your own opinions, clearly. You are welcome to them. I think the limits are fine at the moment, and inflation reduces the value all the time.

It’s a straw man because someone has suggested adjusting the way we do IHT to change the balance of how we raise tax in order to provide services in this country.

We already acknowledge the need for taxes to do so without feeling the need to ban first class travel for instance.

You have jumped in asserting someone is suggesting banning a host of other things. It’s almost the definition of a straw man.

House prices is a problem, so policies there may also be a good thing. But it’s not necessarily either/or.

@DoubleTweenQueen

This is a forum for posting opinions. I have read and thought about yours without feeling the need to be rude about you wishing to express them. How about you consider expressing the same courtesy to me and addressing the points rather than the poster?

What happens if they don't have the money? huh, they have the money from the inheritance

You think so but somebody up thread claimed you have to pay the tax before getting the inheritance. That can't be right.

House prices - there is CGT on anything other than your primary residence. (We only have one, in case you wondered). House 'values' are ridiculous. There needs to be a big adjustment in the market. It only serves banks and estate agents. A place to live is a pretty basic need. Not sure about inheriting property - has never and will never happen to us.

You don't seem to be accepting other's opinions but trying to use them to support your own. I am aware some people are advocating changing the limits/law.

@bnkybox I thought I was putting my opinion forward, and that you are being dismissive of me and others. How about some courtesy?

I really don’t understand why people get so incensed about inheritance tax. Money is often taxed many times over - VAT, stamp duty, council tax are all paid out of taxes income. The fact is there is a huge amount of wealth in property owned by older people in this country and if this is allowed to pass without taxation to the next generation it is going to create a terribly divided nation. Those young people will be paying income tax to pay for the care of the older people and also will pay the price for the knock on effects of the coronavirus. The money is usually unearned gains on property. A good rate would be 50% on everything above £100,000. The money could be used to improve services in the NHS and provide free personal care for all, including subsidising NH fees.
Self interest and wanting to look after our own is natural but all our children deserve a stable society not a toxic and resentful society the vast levels of inequality coming will cause. Agree we need to tax corporations better but it doesn’t change the fact we need to pay IHT.

You don't seem to be accepting other's opinions but trying to use them to support your own. I am aware some people are advocating changing the limits/law

I accept other people have their opinions, but it doesn’t mean I need to agree with them, does it?

When people are discussing something they do use evidence and make points to the contrary.

It feels like you were just being a bit rude to me personally because you don’t like my opinion, which is a bit off.

@binkybox please do not try to twist or interpret my comments to your own agenda

@bnkybox I thought I was putting my opinion forward, and that you are being dismissive of me and others. How about some courtesy?

Dismissive by not agreeing and pointing out things that could contradict that view? How would you like me to engage with courtesy?

I feel like it’s you who hasn’t shown courtesy by putting me down as liking the sound of my own opinion.

binkybox please do not try to twist or interpret my comments to your own agenda

How am I doing this? By responding? Would you rather a thread where only people who agree with you may post?

No point clapping for the NHS etc if we aren't prepared to pay for it.