Labour should increase inheritance tax to 50 per cent

[Tummyachey]

If they did this it would raise billions of pounds - while avoiding raising taxes on working people. Exemptions should be put in place to protect small businesses; I accept this would be complicated, but they need to try and make it work.
So much money could be raised and it would also encourage earlier wealth transfers which would stimulate the economy. In addition, it would help redistribute wealth thus reducing inequality.
There would be political backlash, of course, but they need to get the economy growing and should act now so that the results are visible in time for the next general election.

Another reason it's not a good idea is that any gain between the "gift" and ultimate sale is liable to capital gains tax as it's no longer the "main residence" for main residence CGT relief as the "owner", i.e. the child isn't living there!

I've had a fair few cases where solicitors have done such a gift/transfer for IHT purposes without realising/advising on the CGT implications. The children don't like suddenly finding themselves with CGT to pay!!

I will get an inheritance one day: I’m just thinking of the greater good rather than my personal benefit.

Probably the best idea then is to sell up later, downsize and go on loads of holidays! (Or move to a different country) the boy will make his own money anyway 😊

Well said

the benefit money is unearned

It depends what your own personal version of the greater good is and how that aligns with the public sector's version.

It's evident to me that the greater good for Great Britain has been set aside by the public sector and the outcome is a deterioration into a dangerously fractured and sectarian society which is increasingly lawless and very unpleasant to live in. The public sector attitude to the victims of child rape gangs being the most deplorable and disgusting example which is impossible to live with for me. The end.

My two sons don't want to live here. UK employers train staff in how privileged white men are and how they must step back for everyone else. They have decided to step away completely. I'm following them out.

If you believe there's a policy tweak available that will generate sufficient cash to reinstate the social contract then keep searching however you are looking for the wrong thing. Keep taking money from people for this society they fundamentally don't consider to be fair to them and you will simply make them hate it more.

Isn’t that Communism?

Your sons will hate this country even more if it goes bankrupt.
Increasing IHT is just one way to raise some of the money we need. We are spending more than we are generating and, you are right, we need to stop spending so much, but so far it’s proved very difficult for Labour to find a way to do that. IHT is just one small step in the right direction.
Obviously raising IHT won’t generate enough money by itself; we need to cut spending and grow the economy as well.

We are not staying to watch the bankruptcy.

The last budget was meant to be a one off tax and borrowing hike from Labour.

What happened, why are Labour etc still asking for more with this kind of thing?

Taxes don’t just pay for benefits - they pay for healthcare, education, defence, police, roads, paying back debt, libraries, museums … and many other things. I agree that spending on welfare needs to be cut, somehow, but even if that were to happen there would still be a need for the country to raise money.

Labour clobbered business too hard stifling growth and increasing unemployment. It would be better to raise IHT than to hit businesses again.

Staying here - and working towards saving the country from bankruptcy - would be my idea of working towards the greater good.

It was their error, which I see they still haven’t acknowledged, they’ll have to find another way other than more taxes.

I'm paying enough for education, thanks. Paying for two State places my children won't use and now the VAT on fees.

Yes I know we pay council tax tax

but this “unearned” rhetoric is irritating

I disagree with VAT on education on principle - that does not affect my views on increasing IHT.

I pay for teen mums, long term off sick people, single mums, people who didn’t bother saving up etc through taxes. I build assets with the rest because I choose to save than spend on lifestyle. I do this so my kids could have a good life. Why exactly do you think I owe the public 50% of this? I’ve already paid half of what I earned. I didn’t take much from the system. My kids studied privately, I use private medical services where possible. Why the f should I give half my hard earned wealth to the govt ? So more people could sit at home while my kids work and pay for their lifestyle?

My son will have left the UK by then as he has no intention of staying in the UK once he's fully qualified. There's a constant stream of other staff moving abroad in his firm too!

They need growth to raise funds. Tax rises don't work in the longer term. We need more people working, more business activity, more production, etc.

Personally, I think we need to dust off the YTS/JTS schemes of the 80s to get the younger people and longer term unemployed in the workplace. It's no coincidence that we have relatively high growth in the late 80s and 90s which followed from the mid 80s job creation grants/incentives/schemes, etc.

It doesn't generate the money people believe it does, also just demotivates people from working hard, my husband and I are in early 50's and now looking to slow down and live of the existing money rather than leaving for tax man.

As ever
First post nails it 😁

👏👏

You don’t have to give half of your hard earned wealth to the government- it only kicks in after £500,000 or £1,000,000 if you’re married.

By spending it rather than hoarding it you will be helping to stimulate the economy - which is a positive.

No, I have not described PETs in the way you suggest.

I don’t describe them at all in my posts.

Perhaps you have confused me with another poster ?

You have not explained why the admin costs would be higher than existing rules on gifts. That may be your opinion, however that doesn’t make it fact.