I want to know what people seem to think about Inheritance Tax, or just Inheritance in general.
I believe that taxing an inheritance is wrong as it is essentially taxing someone twice or more, this does not matter if they're dead or not. I think that people should have the right to decide where their belongings go after they die - they can then choose if it goes to their family/charity or split between both?
What are your thoughts on the matter?
What are your thoughts on Inheritance Tax? watch
- Thread Starter
- 16-03-2013 17:24
- 16-03-2013 17:45
Inheritance tax bites on very few estates. Given a married couple have two allowances for them the threshold is circa £650,000.
It is not true that the estate has already been taxed, some of it has some of it has not. The increase in value of the deceased's house, beyond the price originally paid, has probably suffered no tax, in a lot of cases this will make up the bulk of the estate.
I think it is a clumsy tax and would prefer to see it replaced with some form of capital gains tax on death so only those untaxed gains fell into charge, though I think this would only work alongside capital gains tax, through life, on an individual's own home. (Probably like Sweden with a rollover of the charge where one house sold and a more expensive one purchased, the gain only coming into charge on downsizing/second death.)Last edited by DJKL; 16-03-2013 at 17:46.
- 16-03-2013 19:11
It's certainly morally dubious and not something i support but it's a pretty low priority tax for me.
- 16-03-2013 19:16
(Original post by billydisco)
- 16-03-2013 19:28
Not sure if you meant to reword that- but a spouse doesn't pay any IHT, or do you mean to pass on to their kids?
Most couples without significant estates tend to leave their entire estate to the other, children tend to inherit on second death. Given there is no IHT liability inter spouse the proportion of the allowance of the first to die passes for use on the estate of the second to die, thus negating the need to either use it on first death to children, depriving the survivor of that part of joint assets, or jump through the hoops of using nil rate band discretionary trusts, as was the case prior to the unused individual allowance being transferable.