Inheritance Tax

[big fat yorkshire pudding]

If you are in a certain financial position , you can contribute a substantial amount of your salary into your pension with substantial tax relief. You can in fact contribute 100% of your current salary into a pension pot, with certain tax caveats. Thereby paying no income tax on that salary at all.

That's right but they only pay tax relief up to a 60k maximum. anything over that is better invested in an ISA.

Trouble is with ISA’s is their 20k limit per person per financial year. Something I do think should be re visited by the govt.

There is talk of increasing the threshold of certain ISA's that will be invested in "UK sourced investments" sounds like a sure fire way to loose a bundle if the current UK stock market returns are anything to go by.

I don’t know about that.
I invested heavily in Rolls Royce shares a just over year ago predicting a post covid bounce back and increased demand for engines. They are up 189% as of today.

I did the same, 205% up for me, wish I'd bought more, they were clearly undervalued.  There's still a lot of value in the UK but also probably a bit higher risk.

The biggest issue with ISA's is the one type per year, that needs to change.  There's no basis to that in the electronic world.  Although flexible ISA's have been good that allow you to withdraw and resupply the account without using up your allowance.  In the high interest rate world, the tax free allowances are really very low.

[Bentley Bullet]

"China, India and Russia all have no inheritance taxes. Several developed countries, including Australia, Israel and New Zealand, have chosen to abolish inheritance taxes in order to create simpler tax systems and encourage the creation of wealth, whether through investment or entrepreneurship."

Not true

What's not true?

[SydneyRover]

"China, India and Russia all have no inheritance taxes. Several developed countries, including Australia, Israel and New Zealand, have chosen to abolish inheritance taxes in order to create simpler tax systems and encourage the creation of wealth, whether through investment or entrepreneurship."

Not true

What's not true?

what you wrote

[SydneyRover]

And you haven't supplied a list of people that are leaving the UK due to IT either.

[Bentley Bullet]

It's what I copied and pasted, hence the inverted commas.

What is not true about what I copied and pasted?

[SydneyRover]

It's what I copied and pasted, hence the inverted commas.

What is not true about what I copied and pasted?

It's up to you to ensure the integrity of what you comment about, do your homework.

[Bentley Bullet]

You effectively called me a liar. now I want YOU to put up or shut up.

https://www.google.com/search?q=China%2C+India+and+Russia+all+have+no+inheritance+taxes.+Several+developed+countries%2C+including+Australia%2C+Israel+and+New+Zealand%2C+have+chosen+to+abolish+inheritance+taxes+in+order+to+create+simpler+tax+systems+and+encourage+the+creation+of+wealth%2C+whether+through+investment+or+entrepreneurship.%22&rlz=1C1YTUH_en-GBGB1045GB1045&oq=China%2C+India+and+Russia+all+have+no+inheritance+taxes.+Several+developed+countries%2C+including+Australia%2C+Israel+and+New+Zealand%2C+have+chosen+to+abolish+inheritance+taxes+in+order+to+create+simpler+tax+systems+and+encourage+the+creation+of+wealth%2C+whether+through+investment+or+entrepreneurship.%22&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDExNjBqMGo3qAIAsAIA&sourceid=chrome&ie=UTF-8

[SydneyRover]

You effectively called me a liar. now I want YOU to put up or shut up.

https://www.google.com/search?q=China%2C+India+and+Russia+all+have+no+inheritance+taxes.+Several+developed+countries%2C+including+Australia%2C+Israel+and+New+Zealand%2C+have+chosen+to+abolish+inheritance+taxes+in+order+to+create+simpler+tax+systems+and+encourage+the+creation+of+wealth%2C+whether+through+investment+or+entrepreneurship.%22&rlz=1C1YTUH_en-GBGB1045GB1045&oq=China%2C+India+and+Russia+all+have+no+inheritance+taxes.+Several+developed+countries%2C+including+Australia%2C+Israel+and+New+Zealand%2C+have+chosen+to+abolish+inheritance+taxes+in+order+to+create+simpler+tax+systems+and+encourage+the+creation+of+wealth%2C+whether+through+investment+or+entrepreneurship.%22&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDExNjBqMGo3qAIAsAIA&sourceid=chrome&ie=UTF-8

I haven't called you a liar bb, I have contested your comment, what you need to do is look at your comment and go through it and determine what is correct and what is not.

[Bentley Bullet]

You said what I copied wasn't true. YOU are the one contesting it, so I want YOU to tell me the untruths in the article.

[SydneyRover]

You said what I copied wasn't true. YOU are the one contesting it, so I want YOU to tell me the untruths in the article.

I just said that in my comment above, it's up to you to work out what is not true and if I'm incorrect you can call me out.

[Bentley Bullet]

No. You said it is untrue. you have therefore declared you have reason to believe it is untrue.

Now, give me those reasons.

[SydneyRover]

No. You said it is untrue. you have therefore declared you have reason to believe it is untrue.

Now, give me those reasons.

No

[drfchound]

No. You said it is untrue. you have therefore declared you have reason to believe it is untrue.

Now, give me those reasons.

No

  Childlike.

[normal rules]

No. You said it is untrue. you have therefore declared you have reason to believe it is untrue.

Now, give me those reasons.

There are no inheritance or estate taxes in Australia. However, you may have tax obligations for the assets you inherit: capital gains tax may apply if you dispose of an asset inherited from a deceased estate. income tax applies as usual to any dividends or rental income from shares or property you inherited.
 
It’s a matter of opinion regarding subsequent inheritances being taxed under CGT or income tax as being a “stealth IHT”.
 There is no IHT per se in OZ though.

[drfchound]

No. You said it is untrue. you have therefore declared you have reason to believe it is untrue.

Now, give me those reasons.

There are no inheritance or estate taxes in Australia. However, you may have tax obligations for the assets you inherit: capital gains tax may apply if you dispose of an asset inherited from a deceased estate. income tax applies as usual to any dividends or rental income from shares or property you inherited.
 
It’s a matter of opinion regarding subsequent inheritances being taxed under CGT or income tax as being a “stealth IHT”.
 There is no IHT per se in OZ though.

CGT and Income tax against those assets received may still also apply in the UK on top of IHT.

[selby]

  A good socialist is a good socialist until they have spent someone else's money.

[silent majority]

SM, how do you think your kids are not lucky to be able to receive at least all of £500k or £800k of £1m inheritance?

I think the government scrapping these loopholes like trusts, as well as all the off shore pirating is also the way to go.

Simply because luck has played no part in this at all. As a family we made decisions along the way which means I can leave my children something I hope. Even that’s not a given seeing as we have no idea if either one of us should end up in private care which will need funding.

Maybe what we should have done is spend every penny and rely on the state to support us!

[Glyn_Wigley]

  A good socialist is a good socialist until they have spent someone else's money.

Whose money are the current government spending?

[Bristol Red Rover]

SM, how do you think your kids are not lucky to be able to receive at least all of £500k or £800k of £1m inheritance?

I think the government scrapping these loopholes like trusts, as well as all the off shore pirating is also the way to go.

Simply because luck has played no part in this at all. As a family we made decisions along the way which means I can leave my children something I hope. Even that’s not a given seeing as we have no idea if either one of us should end up in private care which will need funding.

Maybe what we should have done is spend every penny and rely on the state to support us!

It's not too late to spend, or give it away, whatever gives you feel good.

Luck and fortune plays a part in all our lives. For sure it's poss to lead a less risky life, but still. Abuse, robbery, murder, ill health, your industry not being savaged by innovation, changes etc, are all in the lap of the gods. No one is saying you didn't work hard, be astute. But that's no guarantee of material wealth. You have been lucky, many haven't. More to the point, your kids have been lucky having you providing. How much will the relative quality of their lives be affected by having say an extra £100k which is effectively taken from the communities around them?

[danumdon]

SM, how do you think your kids are not lucky to be able to receive at least all of £500k or £800k of £1m inheritance?

I think the government scrapping these loopholes like trusts, as well as all the off shore pirating is also the way to go.

Simply because luck has played no part in this at all. As a family we made decisions along the way which means I can leave my children something I hope. Even that’s not a given seeing as we have no idea if either one of us should end up in private care which will need funding.

Maybe what we should have done is spend every penny and rely on the state to support us!

This is exactly to the point.

Far too many people these days are not prepared to plan and save for the future, for themselves and their families.

We have become a something for nothing society with governments of all hues now feeling pressurised to tax the last penny out of people who have been prudent and sensible with their finances. Instead the benefit society has grown to a level where some now know nothing but receiving handouts to supplement poor wages instead of attempting to improve their lot by striving to improve themselves, get a better paid job or educate themselves to enable the opportunity for future advancement.

This is what now cripples governments into going down a road where they are firefighting a loosing society instead of creating the conditions to better enable people to advance themselves.

This can be done but it seems the desire and willingness to work hard has now become an old fashioned occupation, why work when the state will bung you the same for nothing? seems we have quite a vocal few who are happy with this situation and are quite happy for government to legislate in this direction who in their blind ignorance rob the working man who has been careful instead of the top 1% who need reform.

[danumdon]

SM, how do you think your kids are not lucky to be able to receive at least all of £500k or £800k of £1m inheritance?

I think the government scrapping these loopholes like trusts, as well as all the off shore pirating is also the way to go.

Simply because luck has played no part in this at all. As a family we made decisions along the way which means I can leave my children something I hope. Even that’s not a given seeing as we have no idea if either one of us should end up in private care which will need funding.

Maybe what we should have done is spend every penny and rely on the state to support us!

It's not too late to spend, or give it away, whatever gives you feel good.

Luck and fortune plays a part in all our lives. For sure it's poss to lead a less risky life, but still. Abuse, robbery, murder, ill health, your industry not being savaged by innovation, changes etc, are all in the lap of the gods. No one is saying you didn't work hard, be astute. But that's no guarantee of material wealth. You have been lucky, many haven't. More to the point, your kids have been lucky having you providing. How much will the relative quality of their lives be affected by having say an extra £100k which is effectively taken from the communities around them?

The politics of envy, not happy for people who have made good life choices but quick to fleece them because they have been "lucky"

Tragic.

[Bentley Bullet]

Bill: I'm gonna get pissed tonight and blow all my money on drink.

Ben: I'm gonna drink a bit less and save enough for a kebab on the way home.

Bill: That's fine by me, mate, we can share the f**ker!

[BillyStubbsTears]

Bill: I'm gonna get pissed tonight and blow all my money on drink.

Ben: I'm gonna drink a bit less and save enough for a kebab on the way home.

Bill: That's fine by me, mate, we can share the f**ker!

Goodness is it THAT time already?

[Bentley Bullet]

Bill: I'm gonna get pissed tonight and blow all my money on drink.

Ben: I'm gonna drink a bit less and save enough for a kebab on the way home.

Bill: That's fine by me, mate, we can share the f**ker!

Goodness is it THAT time already?

Yep, that's just what Bill said when it was his round.

[BillyStubbsTears]

SM, how do you think your kids are not lucky to be able to receive at least all of £500k or £800k of £1m inheritance?

I think the government scrapping these loopholes like trusts, as well as all the off shore pirating is also the way to go.

Simply because luck has played no part in this at all. As a family we made decisions along the way which means I can leave my children something I hope. Even that’s not a given seeing as we have no idea if either one of us should end up in private care which will need funding.

Maybe what we should have done is spend every penny and rely on the state to support us!

I think this sums up why discussions on IHT get so heated.

People want to think that their success is all down to them and their efforts.

My take, as someone who has done reasonably well is that it is very easy to discount the role that fortune plays in individual success.

I was paid by the state to be the first person in my family to go to university. The state also paid my fees.

I was paid by the state to get a higher degree.

Up until now, I've been very lucky with health and I've never had a serious illness that stopped me working.

I've been exceptionally lucky in that the company I run has three times come close to failure, only to be invited to tender for game changing contracts.

My house has doubled in value in the past 12 years.

None of those things were predominantly or even at all down to my valiant efforts. I've made the most of them, but in a different world, with a different roll of the dice, or a society that valued different things, I would have had a very different outcome.

It makes me humble and it makes me realise it's NOT all about me and my efforts. But I get that some people don't like considering that possibility.

[BillyStubbsTears]

Bill: I'm gonna get pissed tonight and blow all my money on drink.

Ben: I'm gonna drink a bit less and save enough for a kebab on the way home.

Bill: That's fine by me, mate, we can share the f**ker!

Goodness is it THAT time already?

Yep, that's just what Bill said when it was his round.

Trust me. If ever I had the misfortune to be sat with you in a pub, I'd buy you drinks till you couldn't talk.

[Bentley Bullet]

...

[Bentley Bullet]

SM, how do you think your kids are not lucky to be able to receive at least all of £500k or £800k of £1m inheritance?

I think the government scrapping these loopholes like trusts, as well as all the off shore pirating is also the way to go.

Simply because luck has played no part in this at all. As a family we made decisions along the way which means I can leave my children something I hope. Even that’s not a given seeing as we have no idea if either one of us should end up in private care which will need funding.

Maybe what we should have done is spend every penny and rely on the state to support us!

I think this sums up why discussions on IHT get so heated.

People want to think that their success is all down to them and their efforts.

My take, as someone who has done reasonably well is that it is very easy to discount the role that fortune plays in individual success.

I was paid by the state to be the first person in my family to go to university. The state also paid my fees.

I was paid by the state to get a higher degree.

Up until now, I've been very lucky with health and I've never had a serious illness that stopped me working.

I've been exceptionally lucky in that the company I run has three times come close to failure, only to be invited to tender for game changing contracts.

My house has doubled in value in the past 12 years.

None of those things were predominantly or even at all down to my valiant efforts. I've made the most of them, but in a different world, with a different roll of the dice, or a society that valued different things, I would have had a very different outcome.

It makes me humble and it makes me realise it's NOT all about me and my efforts. But I get that some people don't like considering that possibility.

IHT adds £7 billion to the government's £788.8 billion tax collected by the HMRC. That's a relatively very small contribution of 0.008%.

It is a very unpopular tax because it is unfair, and probably not worth the discord it causes.

[BillyStubbsTears]

SM, how do you think your kids are not lucky to be able to receive at least all of £500k or £800k of £1m inheritance?

I think the government scrapping these loopholes like trusts, as well as all the off shore pirating is also the way to go.

Simply because luck has played no part in this at all. As a family we made decisions along the way which means I can leave my children something I hope. Even that’s not a given seeing as we have no idea if either one of us should end up in private care which will need funding.

Maybe what we should have done is spend every penny and rely on the state to support us!

I think this sums up why discussions on IHT get so heated.

People want to think that their success is all down to them and their efforts.

My take, as someone who has done reasonably well is that it is very easy to discount the role that fortune plays in individual success.

I was paid by the state to be the first person in my family to go to university. The state also paid my fees.

I was paid by the state to get a higher degree.

Up until now, I've been very lucky with health and I've never had a serious illness that stopped me working.

I've been exceptionally lucky in that the company I run has three times come close to failure, only to be invited to tender for game changing contracts.

My house has doubled in value in the past 12 years.

None of those things were predominantly or even at all down to my valiant efforts. I've made the most of them, but in a different world, with a different roll of the dice, or a society that valued different things, I would have had a very different outcome.

It makes me humble and it makes me realise it's NOT all about me and my efforts. But I get that some people don't like considering that possibility.

IHT adds £7 billion to the government's £788.8 billion tax collected by the HMRC. That's a relatively very small contribution of 0.008%.

It is a very unpopular tax because it is unfair, and probably not worth the discord it causes.

1) £7bn is nearly 25% of the Defence Budget. It's equivalent to 1% on VAT.

2) Check your maths.

[Bentley Bullet]

Well, they should increase other taxes to cover it then. It is an unfair tax and irrespective of how important you claim it is that doesn't make it a fair tax.