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?

 

[Bada-Bing!]

I am not sure Richard is right that BPR is claimable on top of APR. My understanding is that the £1m allowance is combined per person. And it's not transferable to spouses.

 

[General Melchett]

It's silly that increasing income tax and national insurance has become so politically taboo. Labour could have reversed Truss' idiotic NI cut to help fix the mess and still romped the election. Instead they tied themselves in knots by committing 'not to increase taxes for working people'.

Wouldn't surprise me if the Tories promise to abolish IHT and restore generous CGT thresholds before the next election. Not a fan of CGT either. You pay income tax, NI on salary. VAT on what's left over. If you then buy shares as a non-ISA investment for retirement you have to pay stamp duty on those. You then pay income tax on dividend income and you still have to pay CGT on a gain > £3k when selling the shares. The Government are taking a good slice at every turn. Oh and if you die and don't have any living relatives or leave a will - your whole estate goes to the Crown. It's better than any ponzi scheme.

 

[Bada-Bing!]

Our tax system is a mess created by successive Govts - fiddling around with it and tweaking it for political purposes. I doubt the Tories would reverse this even if they do somehow get into power. We've seen this before so many times.

At the heart of it is our national debt - close to £3Tn and no amount of tax raised in the long run will cancel it out in the next 10 years. It's there for a reason.

America's is 10 times the size of the UK's and it carries on printing money and cutting taxes.

Of course in the long run inequality gets wider.

 

[General Melchett]

Our tax system is a mess created by successive Govts - fiddling around with it and tweaking it for political purposes. I doubt the Tories would reverse this even if they do somehow get into power. We've seen this before so many times.

It also keeps tax advisors in work which is presumably good for the economy. Bit like the housing market where you have solicitors, surveyors, snagging companies, estate agents, mortgage advisors, HMRC all getting a slice of the action in what is a truly horrendous process. They have no intention of simplifying or improving things because the only person who stands to benefit is Joe Bloggs.

 

[TRF_Olyy]

Gonna be a long four years, and he's not even in power yet

 

[Saintjay]

Gonna be a long four years, and he's not even in power yet

Germany probably wouldn't go there tbh.