Inheritance tax, will it affect you and if so what are your plans?

Question

Despite the statistic, I am one of the so called 3% who is likely to be hit inheritance tax...

My mother and father bought a house in 1984 for 50,000 and have spent close to 500,000 over a 20 year period of repairs, resoration and improvement...

On current inheritance tax laws... if my parents die I will have to pay...

£520,000 in inheritance tax on the house alone...

I was going to include the maths, but thats for the house only, if your desperate enough you can figure it out.

I think its totally unfair that my mom and dad who have worked all their lives, hard, payed tax, national insurance for over 50 years should have half a million pounds of their value stolen by the government on their death.

We have looked into the Gift of Release loophole (which means your parents can sign property over to your for no tax assuming a single member of your parents survives 7 years following the contract)

However labour plan to abolish this option too

UNFAIR TAXATION!

Answer 1

Yeah, now you know why Conservatives proposal was such a bomb shell to Labour ...

I expect good old Gorden was counting on massive amounts of Tax revenue coming in over the next few years as our Parents die off and he gets his hands on 40% of the entire worth of the UK property market .. now he will have to think again (or loose the next election)

Answer 2

this tax is ridiculous. should be gotten rid of :)