what do yo think about inheritance tax, has it affected you someway?

Answer 1

I think IHT is one of the biggest injustices currently being done to British taxpayers.

IHT was never meant to affect "ordinary" people. It was designed to ensure that people who lived on inherited money and never worked (and therefore paid no income tax) paid something to the treasury.

Now we have the situation that people work hard all their lives, are taxed on the money they earn, save their money, are taxed on the interest, and then what is left when they die is taxed again. I think it's a national disgrace.

It has affected us because I recently lost my nana. Her and my grandad had saved all their money (instead of spending it to make their old age more comfortable) to pass on to their children. When she dies, we had to find £40000 to pay the tax bill, BEFORE we could get probate and sell the house. The whole system makes no sense.

Answer 2

Hello,

The whole idea of inheritance tax is outragous & completely unfair in my opinion. Its really a tax on death, or more speifically a tax on the entire acummulation of a persons entire life times work.

For Example:-
Think of it this way, a person works all their life say 45years & then dies of natural causes at age 70yrs, leaves a house, a car, other smaller valuables, a pension (in the bank) & some further savings say 50K. The total financial assetts of the dead persons estate including their property comes to 500K, no tinheritance tax is paid on the first £320,000K which means that the persons relatives (son, or daughter but not wife as it doesnt apply to her).

They are then taxed on the remaining £180,000K and this amount is then taxed at a rate of 40% which means the inheritance tax bill would be about £72,000 to pay and that goes straight back to the government and the tax man.

**The problem here is that house prices & house price inflation means that its not just the 1% or 2% super rich (i.e. lords & ladies & barons & baronetts, or the richard bransons of the world that get hit for inheritance taxes). It means that becuase house prices have gone up by 180% over the last few years that most ordinary people how have a property worth more than say 10 years ago. The average UK house price is now I believe around £180K.

Whilst the limits for inheritance tax have not changed (not gone up) house proces have, which in turn means that a larger % of the population are now caute by inheritance tax becuase there houses are worth more & so are their total estates at death.

**Have no doubt about it, inheritance tax is a MASSIVE source of revenue for the government, we are talking billions of £.

**I heard that if inheritance tax was abolished totally today then the government would have to put up taxes by an extra 18p in the pound to balance it out again. Scary stuff to be sure.

**Totally unfair & totally injust, YES!! TOTALLY!! why should the tax man take such a massive slice of our hard earned wealth at death or any other time for that matter.

IR

Answer 3

I don't see anything wrong with it in priciple although I would disagree with the levels of tax and reliefs (as I do with a number of other taxes).

Basically throughout your life you pay tax twice. Once when it is earned (as with wages and interest) and once again when you spend it (VAT and other duties).

Inheritance tax just brings into the tax fold the money you accumulated by not spending.

We have this complicated system in a attempt to make the payment of taxes "fair". Any general formulaic process will benefit some people and cause hardship to others. This is regrettable, but unavoidable.

Some of the hardships mentioned could have been avoided by planning in advance.

Answer 4

I believe it is shocking but good advice and thought may ease the amount eventually having to be paid. My aunt signed 3m of property to my couisin 5 years ago when he was 30, with the thought of doing it early before she wil be 60 and beating the 7 years along with monthly 10-20K cheques knowing he had no worries,He still works but 2 years ago was totally messed up for 6 months and couldn`t leave the house developed depression.
Because he couldn`t get used to having money, it was a shock to see. He gave me rent free house for as long as i want. My parents never talk to much about money they are as well of as aunt . They wouldn`t loan me 1.5k to start my successfull Architects buisiness, I think My Aunt clever on what she done, My
father has given no indecation to my sister or myself of what to do. We know there are 4 or 5 shoe boxs with about 30k in each and our parents know we have always known, shows you peoples attides towards money is is different

Answer 5

Not yet but I think ithe concept of it is disgusting.
Practically everything in this so-called "free-country" (ha! what a joke!) is taxed. I hate the Government.

Answer 6

It only affects the wealthy, assets above $4,000,000 or those with less who stick their head in the sand and don't plan for it. This tax is easily avoided with some planning

Answer 7

makes no sense Ruth you say to you but it sure does to money grabbing chancellor Brown and Dididdly yes it has affected everyone who has a bob or two

Answer 8

no it hasn't

it shouldn't be allowed cos surely the dead person has already paid some kind of tax on the stuff in their will