Does anybody know about recent publicity / political commentary regarding Inheritance Tax in the UK?

Question

I know a little bit about the effect of rising house prices and the effect of investments in Peps and Isa'a upon death, but was wondering if anybody could shine any light on the subject?

Answer 1

Inheritance Tax (IHT) is charged on the value of the deceased's worlwide estate. Any part of the estate that passes to the spouse is exempt and additionally there is an exempt amount. Currently the exempt amount is £285,000. Gifts to charity are also exempt. IHT is chargeable at the rate of 40% on the non-exempt part of the estate. Any debts that the deceased had, including funeral expenses, are deducted from the estate.

Answer 2

I'm in the USA now, but this is how I understand it:
The IHT threshold (285,000 pounds just now, I believe) is indexed for "regular" inflation. Over the long term, house prices outpace regular inflation by some way. So someone with an average estate could very easily end up paying IHT on the value of a modest home. Just look at house prices in the south-east.

I understand that the 2006 budget also removed the ability to avoid IHT by writing an insurance policy "in trust". Hence, many investments held by working people will be subject to tax going forward.

Answer 3

All taxes have a ethical foundation, in relation to inheritance tax it incredibly is predicated on the actuality that once you're lifeless you no longer desire money. those you leave in the back of can bypass out and earn their own. there is not any such element as a self made millionaire or billionaire. They earned their wealth throughout the time of the confusing artwork of people who extremely did the ordinary jobs of merchandising, making and dealing with the employer. The so called self made deserved a bigger advantages for their entrepreneurial recommendations and movements yet do they deserve all the advantages? the place might the self made be if something human beings refused to artwork for them, they actually does no longer be self made millionaires or billionaires might they? Who says the unfavorable do no longer deserve a penny? Your view of the unfavorable is that of somebody who has under no circumstances been in that place. Why could human beings whose existence opportunities have under no circumstances given them get right of entry to to finance, bigger education, etc be denied those opportunities with the help of folk who had it given to them on a plate and customarily waste it. As for why we could continually save it, the cost of inheritance tax to the state is approximately £2.ninety one billion according to annum and it incredibly is paid with the help of 20,000 human beings on the final count kind. this is approximately two times the kind of folk who will die according to 3 hundred and sixty 5 days from alcohol abuse and an exceptionally small proportion of deaths in the united kingdom each and each 3 hundred and sixty 5 days. on the tip of the day inheritance tax impacts in easy terms a small share of the inhabitants by using fact maximum human beings of folk have not got sources to the value that the tax kicks in at. on the comparable time smart tax making plans will cut back the point of tax paid on dying. finally incredibly lots all countries tax the valuables of the lifeless, if no longer by using an instantaneous inheritance tax then by using capital beneficial factors taxes on their sources.