Inheritance tax to be halved

[WildWhippet]

The government intends on having the rate of inheritance tax in the autumn statement.

Is this a good move? Will it encourage you to vote for the Conservative Party?

Exactly. I worked very hard for my work bonus this year and paid 40% tax on it. I can't imagine anyone with "socialist leanings" agreeing that because I had worked very hard I should get it tax free!

We’re not the only children, he’s just the only one I worry about.

My parents won’t entertain an uneven split, and I guess means testing the recipient is never going to be an option, so I’ll just have to hand over mine. Or what’s left of it after the fees on a terrifyingly large (more than my house is worth) executor’s loan.

This sparked my interest as this week I had the pleasure of paying £200,000 in inheritance tax after my father died in the summer.

And whilst I am slightly annoyed at having to pay it I understand what a fortunate position my sister and I are in - we will still inherit the best part of £2million between us.

It probably could have been avoided if my father had started financial planning 10+ years ago but he felt on some level that he should pay his dues and contribute to society.

If we want to live in a good society we all need to pay taxes and this tax surely is the least offensive -its taking money from the dead who no longer need it.

For many people they have not 'earned' the wealth - it has accumulated because we have failed to build enough housing for the past 30+ years and so house prices have increased more than general inflation. The house my parents bought in 1978 for £30,000 will shortly go on the market for £700,000

I can see there is scope for reform - currently you have to start paying inheritance tax before you can get probate so unless the money is easily available executors may have to take out a loan to pay it before being able to access the estate.

Exactly. Both those agin it and those for it don't seem to understand this. The tiny minority who would pay probably already vote for them.

@tamsinrsmy "I can see there is scope for reform - currently you have to start paying inheritance tax before you can get probate so unless the money is easily available executors may have to take out a loan to pay it before being able to access the estate."

I thought banks released money so you could pay that before probate? That's awful, having to take a loan.

Inheritance tax is a tax paid by those whose houses have risen in value and they don’t want to / can’t move so they die owning expensive assets. The truly wealthy can afford to give away a lot of assets when they are still alive and thus avoid inheritance tax easily.

Drop the tax rate and fewer truly wealthy people would bother avoiding it so you get more wealthy people paying it and probably take more tax.

when looking at government tax policy you should never take the headline at face value (it’s a tax cut for the rich!), but think about the behaviour that the changes will induce in others and how that effects the tax rate. This is a classic case of drop the tax rate, take more tax.

So many estates are going to be drawn in that wouldn't have been. I think people should be able to pass on the value of their main residence without limit. People talk about £1m limit here - that's not true for single parents and it is very easy to have a house worth over £500k if you live in the south.

The threshold needs to increase dramatically.

And if you are going to tax anyone it should be the beneficary.

People talk about £1m limit here - that's not true for single parents

Well, it kind of is, in the sense that people have two single parents who get the same £500k allowance each.

That only works if there's sufficient cash in the estate to pay the IHT bill. If there isn't property can't be sold to raise cash without probate.

This.

Also, when any money is taken out of a trust, income tax is paid. Putting money in a trust fund doesn’t mean that it’s completely tax free money that can be accessed anytime just like a bank account.

i'm pleased they're cutting it, it's an unfair tax. won't make me vote for them though.

The government has some spare money, and this is what they want to do with it, when children are hungry, and the NHS is on its knees. The mask is truly off. They can all go to hell.

The tories can all fuck off. I can’t imagine ever voting for them ever again

@Nitgel Care to explain how it is unfair? Preferably without using idiocies like "my parents worked hard all their lives" and "double taxation".

Is paying tax on unearned inheritance more unfair than say paying VAT on essential home repairs. Or tax on energy bills?

No, I wouldn't be impressed. Halving the rate isn't the way to update or reform it. Raising the threshold is what's needed, on the way to restoring it to a tax on the wealthy, which is what it was introduced for. It's a very bad tax on a number of grounds, and (like several others) has become a stealth tax which draws in people for whom it was never intended and gives leeway to avoid it, to those for whom it was intended. Osborne made it even worse when he raised the threshold selectively, for some but not others, thus increasing the discrimination already built into it through exemptions and ways around it.

Rather than cutting the rate it would be fairer to increase the threshold, with house prices having increased so much it's far too low.

To be honest if I was looking at cutting tax to "reward" hard work and aspiration raising the 40% threshold would be more equitable and benefit more people. Freezing that has drawn a lot of jobs in to the 40% rate and TBH many more people can aspire to earn £50K or more than will ever pay IHT.

It's a tax cut that will only benefit the wealthiest in our society.

Plus ça change...

Tories are gonna Tory.

I think it would be easier and fairer just to raise the level at which IHT is paid.

As someone who hopes to end up paying inheritance tax on what I leave, I think it is a terrible idea. There are so many other things that need money. Schools, NHS etc.

Very welcome as those assets would have being taxed before with stamp duty and capital gain taxes. However, my take is that taxes are quite high in general in this country and the money is misused because the services are on their knees and high earners or net contributors do not get much back at all.

People who disagree tent to add very little to the pot and relied on this. I guess some can always pay extra tax if they wish to do so. Voluntarily contributions.

So distasteful the way people with a lot of money scrabble around to find ways not to pay their dues to society...

Im not sure if it would influence my vote but my kids would certainly benefit as i own property in London, as well as the house my son lives in.

How do you think they got rich ?