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Inheritance Tax?


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#1 model_wife

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Posted 30 August 2011 - 07:29 PM

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What do others think of this tax. do you think its theft as i do. or do you think if you inherit something you have not earned it should be taxed. i know the current threshold is approx 325k (i think). After all the person who is deceased would have paid tax through their lifes to gain assets to leave to a loved one.


#2 xXPoohXx

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Posted 31 August 2011 - 09:40 AM

always been an iffy subject.. everything is taxed unfortunately so all the reasons why not to tax this one are covered :(

i always thought it a shame that family homes sometimes have to be sold just to pay the tax, i have a friend who said she wanted to leave her home to me after she's gone (she wants someone to carry on loving it) but when and if the time comes, i dont know if i can afford it! lol.. stupid hey :( (I am trying to convince her to sell to one of these companies that let the owners live out their life.. but gotta find a non-dodgy one.. and convince her that she may as well spend her money on herself.. she's worked all her life to earn it after all

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#3 Lea2975

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Posted 31 August 2011 - 11:19 AM

I think my parents are looking into ways to "get round it" which is stupid. They've paid tax all their lives and I'll have paid tax all my life....

You can make mistakes in life but it is how you deal with them that makes you a better person or a worse person.


#4 Shadow_X

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Posted 31 August 2011 - 11:31 AM

You don't pay inheritance tax on anything up to £325k you only pay it if the inheritance is worth more than that and even then only on the amounts over £325k if you are married its £600k+ , and to put it simply, if you have nothing and suddenly get £325k worth of property or money etc, what is the issue paying tax on anything about that amount.

It is pure greed...... Too many people are greedy....The fact someone has died and given you something should be something good out of the death, but no, people want more.

If I got left something worth that much, I would be richer than I have ever been, I wouldn't be complaining about paying a bit of extra tax on something.

Whether you have payed tax all your life or not is totally irrelevant. You pay tax on your earnings and your income, you are suddenly £325k richer, and in this country you pay tax on your money and property, that didn't become yours until it was left to you, but the minute it becomes yours you are responsible for the relevant tax, that is how it should be.

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#5 xXPoohXx

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Posted 31 August 2011 - 12:15 PM

oh.. i dont deny that if she left her house to me (well.. bungalow lol) i would be much better off however.. it may be a case i have to sell it to raise the tax to pay on it - which then kinda defeats the object of leaving me the bungalow in the first place.

she's not doing it to leave me money.. she's doing it so her bungalow isnt sold to strangers. i'd love to live there too.. lets face it.. my precious sierra is already living there :P

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#6 continue29

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Posted 31 August 2011 - 01:41 PM

see a financial advisor about inheritance tax planning if you know you are going to fall foul of this tax. There are many things you can do to avoid paying much, if anything at all.

Personally i dont want to ever have to pay it, not just because i dont want to pay tax, but because it would mean i had lost someone very close to me :G12:

#7 skyrider

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Posted 31 August 2011 - 02:18 PM

As far as i know, things like the National Trust and English Heritage often get possesion of old buildings because the person who it was left to through inheritence could not afford to pay the inheritence tax on it, but if it is donated to NT or EH, they do not have to pay tax on it.

#8 model_wife

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Posted 31 August 2011 - 02:39 PM

Those with vast wealth normally have it all in trusts(though that law has changed too) to avoid paying the tax to ensure the families keep their wealth, so i am a little two faced in calling them tax dodgers when i do think a family home inherited after a parent/relations/ has passed on, and their children that inherit are then taxed is unfair.
yes i know they are still increasing their wealth so tax should apply. Just as i and family get older my thoughts are changing on the subject, interesting to see the views of others.

#9 xXPoohXx

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Posted 31 August 2011 - 02:44 PM

my friend (her name is Liz) is the end of a line, her only relatives now are her cousin's children and she doesnt see them.

so ultimately when her time is up she has just her friends to leave her belongings to, and the majority of her 'estate' is going to charity. she's not short of a few bob i guess.. being the end of the line she was the sole benefactor when her parents died, and she had a maiden aunt who also left everything to her.

for a long time she was just 'sat' on the money that was left to her.. but when she retired she did start to spend money, on herself and on the bungalow. she has cerebral palsy and would love to see out her life at her home so is spending money making it more easier for her to stay there.

ultimately although yes i'm a benefactor... i'm not friends with her for this... and i really do hope that one day she will 'cash in' her bungalow and spend the money on herself rather than be sentimental about it.

the good thing is.. she's strong. she's getting on a bit now i guess (she's 65) but she refuses to confine herself to a wheelchair yet, she's still quite active and she lives for her little dog lol. i'm happy to say she's not going anywhere for a few years, i've only known her 20 odd years so dont want to lose her just yet.

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#10 vollox

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Posted 31 August 2011 - 07:12 PM

Our Financial adviser I met through work dealt with our inheritance tax problem in the most ingenious way. He called in an expert who drafted our wills and set up something called a Family Protection Trust.

We are approaching our 30’s and my g/f is a property developer with a portfolio of Buy to Let properties. It is the equity in these properties that brings us a potential inheritance tax time bomb.

I work for a company in Hong Kong and have an apartment in Shenzhen because Chinese property is about one tenth of the price of those in Hong Kong. So our guy advised us to pay the mortgages off on all the rented properties and move the mortgage debt on our UK house we live in as our principle home and my apartment. That way, using a Family Protection Trust, we transfer the rented properties out to the kids on trust which allows us to keep the rental income, while our own house does not attract any inheritance tax because it is not payable on mortgaged property.

By transferring the Inheritance tax Nil Rate Band of £325,000 for each of us into the Trust every seven years, we save 40% which equals £260,000 in inheritance tax. Thats a saving of £260,000 EVERY seven years we survive following the date the trust being set up and property passed into it. This uses a rule with inheritance tax that allows a person to make gifts during their lifetime where it becomes completely free of inheritance tax after seven years has passed.

Thats what you call cracking good financial advice, it only cost me £200 and potentially the kids will get the whole lot for zip!




#11 hated female

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Posted 07 September 2011 - 05:09 PM

What do others think of this tax. do you think its theft as i do. or do you think if you inherit something you have not earned it should be taxed. i know the current threshold is approx 325k (i think). After all the person who is deceased would have paid tax through their lifes to gain assets to leave to a loved one.

wot about wen u get left a house froma loved one or friend yer moreless saying u think pAYING TAX IS WRONG I THINK ITS RIGHT if u get left a 500 thousand pound house u shud pay a littie tax expescially if u been left it *TEXT REMOVED*
i was left a cottage by a elderly man who i cared for and i had to pay it on the property i was left so why shoulnt u lot *TEXT REMOVED"

Edited by Lea2975, 07 September 2011 - 05:12 PM.
Just because you disagree with someones opinion does not make it wrong in the same way it doesn't make yours the correct one.

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#12 skyrider

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Posted 08 September 2011 - 09:20 AM

For those that are in favour of inheritence tax by saying that if you get left a possesion by somebody in their will so it legally becomes yours, how come you have to pay further tax money on it?.

I mean lets say the original person bought the house, they would of paid tax money with it wouldent of they? (like you do with almost anything you buy brand new). So how come then when you buy something second hand, you dont have to pay VAT on it again?

#13 amber leaf

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Posted 08 September 2011 - 02:34 PM

Every one pays tax on what they earn [any type of income]. Inheritance tax, is a bonus, £325/£600k. Is tax free earning. It's got nothing to do with what an other person has payed in tax in there life time. It's a tax relief Bonus to the person who ends up with, in this case a house, as it's classed as earnings.

Trouble is most people don't see it that way.


Any one want to give me some tax relief PM me :D17:

#14 vollox

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Posted 03 October 2011 - 09:20 PM

What kind of tax relief are you looking for?

#15 bouncey_bouncey

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Posted 06 October 2011 - 02:02 PM

i remember when my great grandma died a few years back she left her house and stuff to my nan, her brother and my mum and stuff.. yet my parents had to pay a hell of a lot of tax on stuff and in the end they sold her 6 bed house to cover for that.. sommit they didnt want to do because the house had been in the family for a long time ( my great nan moved there at 18 and she died at 102 and my gran was born in that house same with my uncle ) but why should people have to pay sommit on a house if it was given? however if they sell it then yea they should be made to pay the tax but if it was clearly just given to them as an inheritance then they shouldnt pay any tax on it until they sell it...

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#16 amber leaf

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Posted 11 October 2011 - 07:06 AM

What kind of tax relief are you looking for?

Some one to leave me a £1.000.000 House, Would be nice. :S27:

#17 wills

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Posted 04 June 2013 - 09:14 AM

You don't pay inheritance tax on anything up to £325k you only pay it if the inheritance is worth more than that and even then only on the amounts over £325k if you are married its £600k+ , and to put it simply, if you have nothing and suddenly get £325k worth of property or money etc, what is the issue paying tax on anything about that amount.

It is pure greed...... Too many people are greedy....The fact someone has died and given you something should be something good out of the death, but no, people want more.

If I got left something worth that much, I would be richer than I have ever been, I wouldn't be complaining about paying a bit of extra tax on something.

Whether you have payed tax all your life or not is totally irrelevant. You pay tax on your earnings and your income, you are suddenly £325k richer, and in this country you pay tax on your money and property, that didn't become yours until it was left to you, but the minute it becomes yours you are responsible for the relevant tax, that is how it should be.

 

(bumping an old thread, I know)

 

I have to completely disagree with you here Felix, sorry.

 

I'm of the opinion that taxation is theft and theft is immoral. I'm not opposed to paying *something* - a flat 10% tax on earnings would be fine by me. However, the amount that we pay in tax for our politicians to wazz up the wall on their vanity projects makes me sick to my stomach.

 

Inheritance is essentially a gift - you've worked for something, earned money and paid for it out of your own pocket. If you then want to give that thing you've worked for to a loved one, what business is it of the state? Absolutely none, in my opinion.

 

If we sit back and say "yeah it's cool, I've worked for this, but if I want to transfer ownership to my child then please tax them tens of thousands of pounds", where does it end? If I lend my brother £1,000, should he need to pay tax on it? If you give your child £100 on their 18th birthday, should they be taxed on that?

 

We have an alarming system of entitlement in this country where it has become the norm for those without disposable income to demand the fruits of the labours of those who have a bit more than them, and we blindly accept politicians smugly telling us how much of our income they plan to steal in the next year, and what rubbish they plan to waste it on. "It's for your own good!", they squeal. Taxation creates slavery, nothing more, and the notion that aspiration is bad and we must heavily tax achievement is a cancerous attitude we need to stamp out if our economy and our society is ever to advance.






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