Why is Inheritance Tax the Most Hated?

[MB2]

It's hated because privileged people do not like the idea of anything that helps level the playing field between the haves and have-nots...they will also always be more worse off because of the lottery of whose kids they are, anything that levels that, like IHT, is a good thing .

Ironically I would say IHT encourages this - a major encouragement to the “bank of mum & dad” is the reduction in IHT that early gifting provides.



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[Complex]

Ironically I would say IHT encourages this - a major encouragement to the “bank of mum & dad” is the reduction in IHT that early gifting provides.



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Yes agreed, ultimately it does not come into play for many privileged as measures are taken to avoid. Its sentiment is still disliked for the above reasons though.

[Yokel]

looked at the right way, IHT can be quite positive.

That nice Mr. Hammond is paying 40% of every watch I buy

[JeremyO]

Whilst I have no objection to Inheritance Tax per se, I do think it manifestly unfair that it is so easily avoided by the very wealthy.

If we were to do away with it then what taxes would those who oppose it think should be increased in order to replace it and maintain the total tax take?

[draftsmann]

Whilst I have no objection to Inheritance Tax per se, I do think it manifestly unfair that it is so easily avoided by the very wealthy.

If we were to do away with it then what taxes would those who oppose it think should be increased in order to replace it and maintain the total tax take?

What makes you think it is avoided “so easily”?

[David_D]

What makes you think it is avoided “so easily”?

Might not be ‘easy’ but worthwhile to avoid paying 40% of £9bn in tax. (So his estate saved £3.6bn. Total IHT paid in 2017 £5.1bn.)


https://www.telegraph.co.uk/tax/inhe...oid-it-on-the/


I’m worth considerably less but may have an estate on which IHT will be payable.

[David_D]

If we were to do away with it then what taxes would those who oppose it think should be increased in order to replace it and maintain the total tax take?

In total tax take terms, IHT take is relatively modest so a very small % on Income Tax and/or VAT. (IHT raised £5.1bn in the year to May 2017 vs total tax of c£750bn - so IHT c0.7% total tax.)

https://www.ifs.org.uk/publications/9178


Or make death a taxable event for CGT purposes (including gain on principal private residence). At least then you are taxing a return that hasn’t already been taxed.

[Brian]

It’s hated because it is taking an asset that has been bought with taxed paid money, and then taxing it again - at the expense of the children of the prents that actually worked for it!

Personally, I’d leave my kids as much as possible, whether that was £100k, £1m or £100m. They can decide whether or not they want to keep it once it’s in their pockets and not the government deciding what they want to do with it.

Exactly - me too!!!


B

[Brian]

Oops stutter - soz

[redmonaco]

Or just take responsibility for your own life...? While I certainly know people who clearly operate in the knowledge of a parental safety net, I know plenty more whose financial well-being is purely the result of their own hard work.

Depends what you class as "Hard Work". I think the hardest workers are the minimum wage earners who have to have more than one job to make ends meet. We live in a very unfair society at the present time with the highest earners only there because they have. in some way or another, taken advantage of others.

[draftsmann]

Might not be ‘easy’ but worthwhile to avoid paying 40% of £9bn in tax. (So his estate saved £3.6bn. Total IHT paid in 2017 £5.1bn.)


https://www.telegraph.co.uk/tax/inhe...oid-it-on-the/


I’m worth considerably less but may have an estate on which IHT will be payable.

A link to a press article about planning carried out many years ago (when it was considerably "easier" to save IHT) doesn't answer the question.

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Depends what you class as "Hard Work". I think the hardest workers are the minimum wage earners who have to have more than one job to make ends meet. We live in a very unfair society at the present time with the highest earners only there because they have. in some way or another, taken advantage of others.

Envy.

[David_D]

A link to a press article about planning carried out many years ago (when it was considerably "easier" to save IHT) doesn't answer the question.

You’re obviously much more knowledgable on the subject than me. It appears to have been planning that was effective 2 years ago. I’m not close to trust and IHT legislation but I’ve not heard of any major rewrite in the intervening 2 years.

[redmonaco]

A link to a press article about planning carried out many years ago (when it was considerably "easier" to save IHT) doesn't answer the question.

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Envy.

Absolutely not. I'm quite happy with my life.

I'm unhappy only with the unfairness of society. If you can't see that then you are part of the problem and surely not to be admired. Only today the BBC have mentioned a gap of 400 times between heads of top companies and the workers. If you think that is right then there is absolutely no point in any replies to you

[Templogin]

Envy is a standard human emotion. The poor envy the rich and their nice homes and cars. The rich envy the poor getting free handouts, be they social security payments or food bank parcels. Anywhere collectors gather on internet fora envy abounds. Collections are temporary solutions to envy.

[David_D]

I gather equity release is becoming another way of reducing IHT, as some pension funds aren’t subject to it. Is that right?

Pension savings do fall outside your estate:

https://www.mattioliwoods.com/passin...nheritance-tax