What % of all deaths (uk) resulted in an inheritance tax bill in 2021-22? you're not previewing try and have a guess?

[HecatesBees]

What % of all deaths (uk) resulted in an inheritance tax bill in 2021-22? you're not previewing try and have a guess?

Some 4.39pc of all deaths resulted in an inheritance tax bill in 2021-22 – a total of 27,800, according to official figures.

If your guess was higher, pick YANBU
if your guess was lower pick YABU

(I would have guessed higher, maybe even up to 50%

There is no exemption. The NFU posted this video - https://x.com/NFUtweets/status/1851648406952837226/mediaViewer?currentTweet=1851648406952837226&currentTweetUser=NFUtweets

I'm glad Keir agrees with us all 😞

These are estates that pay. Seriously rich have financial advisers who exploit loopholes.

It's a policy that's dragging more and more fairly ordinary people into it

Lol The Daily Mail has been saying this for at least 20 years and yet the percentage of people affected by it has stubbornly remained the same, even now with the threshold freeze. For nearly everyone in the country, inheritance tax just isn't an issue.

It was said today that the budget changes to IHT, eg including pension pots in the estate, will increase the % paying IHT in the future to 6% so a slight increase.

I am in that % regardless of changes to pension pots as I live in an area of the NW where houses cost well above average. I paid £400,000 for my three bed bungalow in 2010, the two bed bungalow next door has just sold for £685,000. I am divorced so my IHT allowance if £500,000 and I also have some savings, all earned before I retired. I do have a pension pot which I have not yet accessed so that will now also be taxed. However, I suspect I will need nursing care in the future, my overall health is not great, so I will be grateful for having funds to pay for it.

I would love to know how much IHT will be paid on Kier Starmers estate when the time comes, I understand he is a very wealthy man but I suspect he has made appropriate measures to put his wealth into Trusts or other tax avoidance schemes.

I was grateful to see in the Budget that there has been no change to the 25% tax free cash we can get from our pension pots, I was planning to access my tax free lump sum next year for some essential home improvements and other expenses.

Really can’t understand why people get so worked up about IHT.

many don’t realise the maximum threshold is 1million. .

and if you live in the SE, a reasonably standard home will cost more than the threshold for IHT

There are thousands of reasonable homes in the SE for 1million or less, even in London.

Yes,but surely the owners of the high priced housing boom are only starting to die off now.
we have a valuable house, we’re 70s.
The first housing boom was 1990s when we first moved to SE.

I have a feeling a lot of that housing wealth will end up getting used for care.

I think there should be some changes, I’ve never had to deal with IHT but I understand some get caught out by having to settle the bill before funds from disposal are available. Farms should be excluded for many bloody good reasons,

But yeah otherwise it’s really not that big of a deal tbh. I do understand that people in the south are more likely to be impacted but then it’s still a lot of money for zero effort on your own part.

I also think it’s unaffordable to expect the state to pick up the bill when people have money in their homes to pay for care. I can either know that my care will be paid out of assets I own or my DC can have higher taxes whilst young and trying to raise their own families. I really get annoyed with people making sad faces in the newspapers about having to sell their family home when granny went into care. Unless she’s actually going back what you are actually saying is “I want the state to pick up the bill so I get my inheritance”.

No-one has ever accused me of being a leftie (ever) so it’s not even ideological it’s pragmatism.

I didn't know and I guessed 5% so not far off.

I also think it’s unaffordable to expect the state to pick up the bill when people have money in their homes to pay for care. I can either know that my care will be paid out of assets I own or my DC can have higher taxes whilst young and trying to raise their own families. I really get annoyed with people making sad faces in the newspapers about having to sell their family home when granny went into care. Unless she’s actually going back what you are actually saying is “I want the state to pick up the bill so I get my inheritance”.

Yeah, I don’t get this but so many do think this. You can’t have a functioning NHS and care system and every penny of inheritance.

I knew it was 4%.

Bit it's the beneficiaries who are impacted by IHT, and each of those estates may have multiple beneficiaries. So it's not just 4% of people who are affected by IHT, it's however many beneficiaries each of those estates has.

I guessed definitely under 10%, possibly under 5%, so consider that close enough for this thread.

Won't farmers move their farms into limited companies and just change directorships rather than personally own it?

Totally. I saw the DM headline post budget and it was just meaningless. Trying to get people angry with nothing to back it up. It’s like the headline had been written beforehand and they didn’t bother to change it.

Well I guess 5% so was very close.

I already knew it was 4%. The spouse exemption does a fair amount of heavy lifting there, one imagines.

I thought it would be a lot higher, especially with high property prices. Everyone who dies with property in many towns and cities will pay inheritance. Though I believe the figure is lower than expecting is you leave everything to your spouse or partner. In those cases, no IT is paid. It is then paid when the spouse dies.

When my late GM died 20 years ago, she had loads of savings, her property was sold for £275k in Surrey - it would be worth £615k now - even though so much work needed to be done in it, It has not been on the market since for me to check photos of it online. My DM and her late sister had to get a bank loan of around £75-80k to cover the IT as needs to be paid by the end of the 6th month of person dying, even if the estate has not been wound up yet.

I would have to pay IT on my parents; estate as their house is £440k to start with

I agree this is ridiculous, hopefully over the coming days/weeks when the detail is clear it'll exclude actual working farms that meet certain criteria.

Selfishly not arsed about IHT for anyone else because it doesn't affect me.

Guesses about 5%. No problem with IHT, having paid a share of a small % as a beneficiary a few years ago, mostly because of the house value. My DSis's were very upset about it though and stupidly tried to 'hide' and defraud the tax which caused me and the solicitor loads of extra work. Both were overpaid (for the work they actually did) public sector workers; pointing out that tax paid their wages was lost on them.

But increases in home values in the SE are no less unearned wealth than they are elsewhere. Also, people in the SE often (not always) get paid more than elsewhere for the same job, to take into account higher mortgages/rents (so enabling people to ride on the wave of ever increasing house values). So it seems a fair cop for IHT to apply if you have more than £1m in property.

Edited to clarify my point slightly.

I'd read 5% somewhere.

My opinion is that it needs reform, for me the starting point would be to treat the (first) home and the rest of a deceased person's estate separately.

Inheritance tax is disgusting. Getting taxed again on money you’ve already been taxed on rather than being able to leave it to the next generation.

Rubbish, my parents have a big house in London, this will incur IHT for my sister and I, we have a house outside of London, this will incur IHT later

We've just paid a big IHT bill on a very distant relative's estate, each beneficiary ended up with about 16k because there was so many of them.

Its completely appropriate, hundreds of thousands of pounds of free money and people are quibbling about paying IHT

Far far more estates should be paying it, it should be higher.

I knew it was 4%.

People are aspirational, they like thinking theyve done well for themselves, lovely semi in Gloucestershire, extended, maybe a holiday flat in spain, a hundred grand in savings, they don't realise that whild that certainly does make them comfortable, it nonetheless probably won't trigger IHT.

IHT was always intended to capture the biggest, most valuable estates.