To think scrapping inheritance tax would not be popular with voters

[Lanadelday]

I'd say I can't believe the conservatives are considering it, but nothing surprises me any more that they do. But AIBU to think most people wouldn't back this anyway- I can't see it being a big vote winner and don't think they really get that voters are sick of all the inequality and so many people including kids and elderly, living in poverty, not wanting to make it worse.

Or, as it happens when you try to penalise people, they cleverly use tax heaven and financial loophole, they relocate, they invest elsewhere to protect their family and their assets.

People already do this

My house doing that has done precisely zero for the country. It hasn't caused any increase in productivity. It hasn't generated any economic activity. It hasn't improved services, or improved anyone's life (in fact probably the opposite). In short the "wealth" that it has generated isn't useful or even real.

And this is one reason for our economic funk. It should be wages & productivity that is increasing.

@plasticwallet Good luck with that. Given the last 2000 years I'm sure that an equal society is right around the corner.

One can hope, it's certainly more unequal now than it was when I was a kid.

@GasPanic exactly.

I own a flat in London which is worth over the IHT threshold - I have not worked any harder and am no better than someone who onns a flat in a miuch cheaper area of the country or my friends who rent.

Grr any talk of IHT makes me mad. We will pay it, well our estate will. I don't mind even though it's on money we've already paid tax on. Our wealth has come from salaries not property. IHT has encouraged us to give our adults kids money and it also encourages to spend money.

The thing that makes me mad is that the King is exempt as will Prince William will be when he dies. I think that is really scummy behaviour of them. King Charles should not be exempt. He is ridiculously rich already and has no need to retain his wealth. Unfortunately he must be a greedy and selfish person as he hasn't offered to pay it. He pays income tax but even that is done on a voluntary basis

"King Charles will not pay tax on the fortune he has inherited from the late Queen"
"Under a clause agreed in 1993 by the then prime minister, John Major, any inheritance passed “sovereign to sovereign” avoids the 40% levy applied to assets valued at more than £325,000"

He doesn't have to pay capital gains tax either.

John Major was knighted in 2005. What a surprise.

The thing that makes me mad is that the King is exempt as will Prince William will be when he dies. I think that is really scummy behaviour of them. King Charles should not be exempt. He is ridiculously rich already and has no need to retain his wealth

i agree with this

Would never vote for them and this has convinced me even more not to.

Fewer than 4% of people pay any inheritance tax.

Most households will need £1m of net assets before they start paying IHT, and old age naturally depletes the assets they save in life.

Many though wrongly perceive they will pay a lot. Scrapping it when we need more wealth tax is grim policy.

plasticwallet · Today 17:05
Whereas my attitude is DH & I will already get to
inherit loads. It just perpetuates inequality & my dc would benefit from a more equal society.

Nothing to stop you paying more tax should you wish to.

I'm with you, RebelR. If it was up to me I'd put it up, at least over a certain amount. Usually those with wealthy parents have already been given the best start in life and are perfectly able to stand on their own two feet.

Some tweets.

exactly

https://www.gov.uk/guidance/voluntary-payments-donations-to-government

Bit unfair to suggest anyone who owns a home is lucky! Loads of people live on pt work plus uc top up have as many kids as they want etc. Many others who buy delay having kids buying fancy cars and big holidays. Let's not pretend loads who rent just throw money away on living for now.
It is unfair say for care homes that 2 people who earned the sane salary, one stayed in a council or ha rent control for life, spent all their money every month, the other saved with a poorer lifestyle and gets hit for all of it. Not fair. Hard work should pay.

Usually those with wealthy parents have already been given the best start in life and are perfectly able to stand on their own two feet.

That's what I don't really get it tbh. As I said we already a 6 figure gift to help us on the ladder & the threshold is already high. Not targeting wealth makes it harder for the majority & makes housing more prohibitive but 🤷🏻‍♀️

Scrapping it when we need more wealth tax is grim policy.

start by targeting the wealthy then...

Fewer than 4% of people pay any inheritance tax.

Hard work should pay.

Work doesn't. For most salaries are crap.

Super rich definitely need to be taxed more.

Surely the vast majority of those of us who buy houses buy long before any inheritance is passed down?

My parents lived for 37 years after I bought my first tiny flat with no help when I was 28.

Loads of people live on pt work plus uc top up have as many kids as they want etc.

this trope is a but outdated now, birth rates are low

Surely the vast majority of those of us who buy houses buy long before any inheritance is passed down?

I guess it depends where it comes from. I don't know anyone who has bought without help (out of my peers), most came from gps.

yes.

Contrary to what MN tends to claim, I don't know anyone who was depending on inheritance or even family money to buy properties. Grand-parents are still around mostly, middle-age parents (us) have kids growing, our own life all paid on our own salaries!

Well I bought my first tiny flat at 31 without family help.... and both my parents are still with us! No expectations of inheritance from one, and the second estate won't hit the £325k threshold.

@wholivesondrurylane

"Why don't we treat inheritance as income?
because it's already been taxed ."

Well...no. My parents might have paid tax on it but I haven't. By that logic why should I pay VAT on purchases when I am paying for my shopping out of my taxed earnings?