A Political Thread pt. 2

[Reiser99]

For me the issue is that people are taxed based on the land, but don't necessarily have the cash reserves to pay the tax. If the farmers are running a business then depending on their profits/income, they may not have anywhere near enough cash to pay it.

I assume in most circumstances there is money left behind by the deceased and the tax comes out of this first and the family gets the rest. I'm wondering then (because I'm not very knowledgeable) how does it work for say someone who owns a home, but has very little cash reserves when they die. The family want to keep the home, but get taxed on it (Let's just assume it meets the tax threshold). Would they then get a tax bill that isn't covered by the rest of the deceased's finances? Are businesses that are inherited subject to the tax?

For me any system should be fair. I don't agree with IHT personally, but it's a fact of life. If ordinary people are taxed on all their assets including land and property owned, then farmers should be too. However, I'm also happy to acknowledge that it will cause issues for people and this needs to be considered. Having said that (yes I'm flip-flopping), just because you've have a cushy tax break for decades (? centuries?) doesn't mean it should continue.

 

[Amiga500]

This is timely: https://www.bbc.co.uk/news/articles/c789yggdxn3o

Now the source is HMRC - and I'm sure anyone that has had direct dealings with HMRC would agree with me that it means its likely wrong and will be later clarified But it does appear the 2nd of my unknowns might indeed be true.

 

[Amiga500]

For me the issue is that people are taxed based on the land, but don't necessarily have the cash reserves to pay the tax. If the farmers are running a business then depending on their profits/income, they may not have anywhere near enough cash to pay it.

I assume in most circumstances there is money left behind by the deceased and the tax comes out of this first and the family gets the rest. I'm wondering then (because I'm not very knowledgeable) how does it work for say someone who owns a home, but has very little cash reserves when they die. The family want to keep the home, but get taxed on it (Let's just assume it meets the tax threshold). Would they then get a tax bill that isn't covered by the rest of the deceased's finances? Are businesses that are inherited subject to the tax?

Yeah, I think if say, a last surviving parent passes a home to their child with 0 other assets - and its above 500k in value, then that child will get a bill for 40% of the house value minus the 500k allowance.

Which is of course astounding **** if you live in the south of England, as any kinda home that isn't a shoebox is instantly pushing that 500k threshold.

 

[Gavin]

This was an interesting watch, though can anyone comment how accurate it is?