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Original poster

Inheritance tax and labour

27 replies

Lm1981 · 31/07/2024 08:19

Rumours are inheritance tax may be looked at in upcoming budget. What changes do you think we will see?

OP posts:
messybutfun · 02/08/2024 06:25

They have already come after trusts, and that was in the last Tory budget. Most trusts used to have half of an individual’s tax free allowance. They scrapped that. Actually, I think a trust can now earn max £100 per year without needing to pay tax.

The 10 year charge only applies to amounts above the IHT nil rate so there’s scope to change that.

I expect to see changes to business relief, particularly for investors who put money in such schemes to avoid IHT. There will be some requirement that you have to work in the business to pass it on free of IHT. Which will impact investment in businesses.

A frequent flyer tax will be cumbersome to implement and police. It would cost more to administer than what could possibly be gained.

Tearsofthemushroom · 02/08/2024 19:11

Lincslady53 · 01/08/2024 21:00

We retired a few years ago, and have not yet touched our personal pensions, but are looking to start withdrawing next year. We have been saving for over 40 years, on and off (self employed for the last 30 years, with good years and bad) I have been putting some spreadsheets together to look at the tax we will have to pay depending how we draw the money out. The tax relief on our deposits is outweighed many times by the tax we will pay on withdrawals, however we take the money, so the gov will take far more from us over the next few years than we benefitted from while building the pot up. I know inflation will affect the deposits, but we paid more in in latter years than earlier when we had children to pay for. Our withdrawals will all be at 20%, as we're our deposits. The gov need to be careful that they don't kill the golden goose.

Your withdrawals will have the first 25% tax free so will be better than what you put in. Any increase in value has also been free of capital gains tax.

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