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Inheritance Tax

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    Inheritance Tax

    With all the rich contractors owning large houses and BTL properties etc, there must be quite a few with assets more than the current (generous ) IHT threshold of £285K (not much more than the price of a bedsit flat in London).

    Does anyone here relish the prospects of their family having to face a tax bill for £100K after your untimely demise?

    Furthermore, in the last budget the chancellor announced new tax charges on trusts, which were previously used to try and reduce inheritance tax.

    Is it "fair"?

    What steps have anyone done here to prevent Brown pissing on your grave after you pop your clogs?
    Last edited by DimPrawn; 18 September 2006, 06:40.

    #2
    I think people should give 95% of their wealth to the taxman, thats fair !

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      #3
      grieving wives should definitely throw themselves into crematorium flames as the coffin burns in a final mark of respect.

      I would expect nothing less.
      --------------------------------------------------------------------------------

      SA - Is it like a dragons nostril?

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        #4
        My parents setup a trust a few years ago which brown conveniently targetted.

        Instead, I've told my parents not to die until the Conservatives get back in. Ladbrokes have given me 200:1...
        If you think my attitude stinks, you should smell my fingers.

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          #5
          If you have a spouse, then they inherit your estate free of inheritance tax as I understand it. It's the parent to child route which is the problem. Inheritance tax should be scrapped anyway because it's gone further than it's original aim which was to extract taxes from very wealthy estates. If you're parents get infirm then there probably won't be anything left to inherit because it will have all gone to pay for care, so they may as well write a cheque to Mr Brown while they can still hold a pen and throw themselves on the mercy of the State !
          It's my opinion and I'm entitled to it. www.areyoupopular.mobi

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            #6
            apparently a third of home owners are now caught under this tax ...

            did anyone hear about the two elderly sisters who have lived together in the same house forever.
            They are currently in the European Courts to stop Gordo taking their house form them if one of them dies
            --------------------------------------------------------------------------------

            SA - Is it like a dragons nostril?

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              #7
              I’m not condoning the tax at all, it’s despicable, but what is giving me a bucket load of schadenfreude is that why most of us have been battling a whole smorgasbord of unfair stealth taxing during the liebour reign, the very same people that have accused us of being lucky and rich w@nkers, are now getting a taste of the very bitter socialist medicine themselves.
              If you think my attitude stinks, you should smell my fingers.

              Comment


                #8
                Originally posted by kramer
                apparently a third of home owners are now caught under this tax ...

                did anyone hear about the two elderly sisters who have lived together in the same house forever.
                They are currently in the European Courts to stop Gordo taking their house form them if one of them dies
                If it's the same case as I heard, the surviving sister would have to pay 40% of the figure over the £285k on half the house. I think the house is worth about £800k so this means about £46k in tax which, being elderly, they won't have the income to pay or be able to take out a mortgage, so will have to sell the house. Mind you, the survivor would then have £756k left to buy a new house. It would be the same situation if they had separate £400k houses next door to each other.

                If they're successful, then I don't see why the parent-child inheritance path shouldn't also be free of inheritance tax.
                It's my opinion and I'm entitled to it. www.areyoupopular.mobi

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                  #9
                  Originally posted by oraclesmith
                  If it's the same case as I heard, the surviving sister would have to pay 40% of the figure over the £285k on half the house. I think the house is worth about £800k so this means about £46k in tax which, being elderly, they won't have the income to pay or be able to take out a mortgage, so will have to sell the house. Mind you, the survivor would then have £756k left to buy a new house. It would be the same situation if they had separate £400k houses next door to each other.

                  If they're successful, then I don't see why the parent-child inheritance path shouldn't also be free of inheritance tax.

                  it may be the same case however from my understanding the tax exposure is 40% of £400k ... there is no allowance. If the sum of the assets is over the 285k mark then the tax must be paid on the whole amount.
                  So if your assets are £285000.01 then you pay £285000.01 * 0.4

                  inheritance law is dum and the people it was set up to catch have clevere exit plans in place anyway..
                  --------------------------------------------------------------------------------

                  SA - Is it like a dragons nostril?

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                    #10
                    Originally posted by oraclesmith
                    being elderly, they won't have the income to pay or be able to take out a mortgage, so will have to sell the house.
                    Ah, but that's the hidden kicker with IHT. You're not allowed to dispose of the estate or portions thereof to pay the tax. If you can't borrow the money conventionally, it's doorstep loanshark land at 3,000% APR for you.

                    Oh, and interest is due on the value of the estate from the day the person pops their cligs. Nice.

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