Inheritance Tax

[Annabella92]

Is it wrong to try and avoid inheritance tax? Is inheritance tax itself unfair? Has your family taken any measures to avoid it?

That is very naive. A combine harvester and just one tractor is very expensive and most farms would have 2 tractors. The equipment in a milking parlour is very expensive. The land and the farm house plus any farm cottages and livestock too will also get included in the valuation it's not just the house and land. Farmers are asset rich and cash poor. If a farmer dies and his DC has 10 years to pay then that DC dies before the 10 years is up and the DGC inherits the farm they would be paying off two lots of IT on the same farm. Smallholdings probably won't be affected. RR included smallholdings in the official figures. This skews the figures. Labour MP's stood at the large NUF conference just over a month before they got elected in the run up to the election and told farmers they would not change IT on farms. Then the first chance they got they broke that promise to the farmers. Labour are lying scum.

RR seems incompetent to realise when she changes policy those affected will also take evasive policy. Just think about her Nom Dom policy. Those Non Dom's will simply move to Portugal or other countries that have a more favourable tax system for them, then the government will get nothing in from them. She's too stupid to see the obvious. I've got farming friends who immediately after the budget are now planning trusts.

Of course they do once when alive and once when they die.

What a wonderful system. It's only natural that a parent would want to leave any accumulated wealth to their DC and DGC.

No they have the good fortune to be born to parents who save and invest and don't spend every penny they get.

No it is not just earned income. It is also inherited assets from another jurisdiction that does not have IHT 😇As I mentioned, inheritance tax is avoidable. Let's see how much RR gets out of it before Labour is voted out.

Thank you. I am glad you see that.

The government there is also competent. It has planned for the aging population well in advance, including healthcare and aged care needs. There are projects with a 30 year horizon.

It is a different philosophy from a welfare state. The community is supported and steps in. I don't see people living rough. The middle classes are a solid band.

Not everyone's cup of tea but by and large you do keep everything you earn or own, other than income tax (top rate is 24%), VAT (9%) and property tax.

Wow. I wonder when your children are adults they will appreciate this or if they will wish they had a more present parent.

You do know the the IHT rules were exactly the same under the Conservatives (unless you’re a farmer)? This isn’t a Labour policy.

Four million children in this country go to school hungry. That is unfair, not mega rich people having to pay tax on a fortune they no longer need because they’re dead.

Based on the figures given, I am guessing you must be talking about Singapore, which has a GDP per capital of USD 84,000 and a population of 6 million.

Singapore became wealthy thanks to its strong political leadership during a period of strong economic growth, by leveraging its very strategic location on the coast in Asia, and its heritage as a trading hub dating back to the British empire. These factors allowed Singapore to benefit greatly from economic growth in all of Asia and to become a major financial centre for the region. Also, Singapore is in effect a rich city-state on the coast of a continent, sort of like what London might be if it were its own country and well-located on the Atlantic coast of Europe.

Even if you are not talking about Singapore, it must be a high-GBP per capital country: most countries with such low tax rates have weak public services, leaving its weaker and older people vulnerable to poverty, suffering and early death.

The UK needs to take its actions based on today’s starting point for the UK. GBP per capital is USD 49,000, and we do not have large sovereign wealth funds backing our state pensions, and we have the infrastructure that we have. The UK could have been a sort of gateway between the English-speaking world and Europe in some ways, but we are an island nation and our near neighbours are not experiencing strong economic growth and development the way Asia was and to some extent still is. There is no large country in the world with taxes as low as 24% income / 9% VAT / 0% IHT that also has strong public services and good infrastructure. Singapore is amazing, but we should not delude ourselves into seeing that as a model for the UK.

So your comment about disincentivising tax payers is nonsense then. Because you haven’t paid tax on a big chunk of income. Not applicable to most people, is it?
Actually, it’s not even applicable to you. Labour haven’t changed IHT for anyone but farmers.

They got a whole load of tax free inheritance too. So if they had that and also worked so much they couldn’t see their kids it’s a poor show I reckon.

There. Are. No. IHT changes. Except. For. Agricultural. Relief.
Honestly this thread is wildly ill informed.

Wildly ill informed or deliberately misleading?

I loathe inheritance tax , unless it’s for super wealthy ie in the multiple millions etc
i have worked hard my whole life , my home whilst cheap ish when I brought it is now worth a lot , I’ve already paid tax on every penny I spent on it and the fact that I can’t leave it to my child with out paying tax is maddness it will have to be sold tax paid etc
better Would be that my grandchildren could be raised there etc ,

She made Non Dom changes too.

What’s that got to do with a thread on IHT?

They can get a clear million if you have a spouse, the. Pay tax on whatevere is above that. Seems ok to me. Currently 4% of estates pay any at all, expected to maybe rise to 8% due to property price 8ncrease and pension changes (which also won’t affect people who plan to use their pension to support themselves in retirement, as is it’s purpose).

Edit: you haven’t paid tax on its increase in value though. And your children haven’t paid tax on any of it. All money is taxed when it changes hands - multiple times.

No spouse involved

Half a million then. Not a bad tax free sum for your descendants.

If you read my previous comment you replied first too my point was she is incompetent.

Sorry, no idea what you mean.
Your post, though, mentioned Non Dom as an example. The point being discussed is IHT.

We’ll see. Her competence or otherwise will only be determined with time.

@cardibach "There. Are. No. IHT changes. Except. For. Agricultural. Relief."
Did you miss that DC pension pots are now included?

That's the but that I think will unfairly hit single parents, not in final salary schemes, living in the SE, that die from approx age of 55 to 75.

Non-agricultural businesses and inherited pensions are also affected;

Changes to Inheritance Tax (IHT) proposed during the Autumn Budget 2024 include significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR). Pensions will no longer be outside the scope of IHT and liable to 40%.

https://www.rossmartin.co.uk/autumn-budget-2024/8058-inheritance-tax-iht-autumn-budget-2024