Inheritance Tax? Can anyone tell me?

Question

Why?
What gives the Government the right?
WTF we let them get away with daylight robbery like this?
How do the government justify it - really, I seriously want to know that one!

Answer 1

I know don't get me started, i would really love to know this as it's a disgusting thing, tax on death as if they don't tax us enough already.
There are loads of websites available that tell you how to get around it, i know you can give things away as gifts but there are limits.
Here's the governments website on it: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/InheritanceTaxEstatesAndTrusts/DG_10010612

Be taxing us for just breathing soon.

Answer 2

Democratic President Lyndon Johnson had a Great Society idea and it was funded by what he called Redistribution Of Wealth. The Democratic Party is Socialist in their thinking, you know, Take from the Haves and give to the Have Nots. If you think it's bad now check out what happens in 2011, that's when the tax rate goes back to the Pre President Bush tax Break on Estate or Death Tax. If your a Democrat, call your Representative and ask them, Why they Don't eliminate the Death Tax.

Answer 3

When I studied law, the threshold was £72,000 LOLOLOL.
I think now it is £250,000 (not quite sure).
Inheritance Tax is just the idea of TAX taken too far ! Another is Stamp Duty !! And congestion charge. Soon we will have Sex Tax (how the hell they will monitor it would be great to know) and Air Tax and soon we will all walk around with meters screwed to our noses.
The idea behind Inheritance Tax --- you should 'move' your property lots of times (and of course taxed each time it moves) instead of having it stagnant in your name for eternities (and never or seldom taxed). So you should give away during your lifetime and if you survive 7 years Inh. Tax will not apply to that property.... brings back memories of Law School

Answer 4

I am not sure how far back it goes but once it was introduced, subsequent goverments have found it so lucrative, it has never been repealled.

It needs to be repealled and it is down to the public to insist on it by ensuring it is in the next elected government's manifesto.

I know, start a No 10 petition. There were over a million signatures on the road taxing one recently.

Answer 5

Governments have a right to tax, because they say they have. In England it's all down to losing against William the Conqueror. Kings and governments have been taxing us ever since.

Inheritance Tax replaced Capital Transfer Tax which replaced Estate Duty. It's been around in one form or another for centuries. When someone dies, their successors need to draw up an account of all their assets and liabilities and finalise their affairs. It's an ideal time for governments to grab some of it.

Answer 6

Inheritance tax as to hammer the wealthy when it was first introduced. Unfortunately, the threshold has never been sensibly raised. It would be interesting to do a comparison on what the threshold should be now projected on modern living standards. It would probably be in excess of £2million. They do it because they can get away with it and many have fallen into that bracket now due to the rise in house prices. The level is due to be raised, but by today's standards its laughable.

EDIT:

Ron S - I've already signed one

Answer 7

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Answer 8

In the US, it started because people didn't want to have families establish themselves as dynasties, passing on millions of dollars to their heirs who didn't do much to earn it. Currently, I *THINK* the estate has to be worth at least $600,000 before the estate tax kicks in, but I'm no expert. There have been efforts to raise this minimum, or to do away with the estate tax entirely, but the government bean counters get up in arms over that because that would mean that they have to cut one of their spending programs. And that would tick off voters, and they can't stand the thought of that!

Answer 9

I agree, it's not right. You pay taxes on the money you earn, then you buy a house and pay taxes on it, then when you die your kids have to pay taxes on the same house (a third time on the money you originally earned). I know they are trying to get a law passed to stop it now, but so far I haven't heard anything positive. I'm one of the inheritors that had to pay taxes on what my parents left me. Between the lawyer and the taxes they got as much as me!!

Answer 10

A lot of tax can be avoided with careful planning. Rich people pay hundreds of thousands to tax lawyers and accountants to save them millions in taxes.