New_scooby_04

iTrader: (4)

I see what you're saying (and I understand the principle) but the recipient of the money will still be paying tax on whatever they receive: tax on savings, tax on whatever they choose to use it to buy. If they use it to buy a house/a bigger house, they will pay more council tax etc... there is no escape from tax, the government will get their share in the end.

So why do the government insist on taking 40%???

Also, why is the threshold set so low? As I said in my previous post, this is not some kind of tax to prevent the uber rich from shipping all their wealth off to another country. £280,000 these days gets you a 3 bedroom semi in SE and that's before any savings/other assets are taken into account.

Realistically, A high proportion of UK residents will now qualify. I don't see how this can be viewed as anything other than a further NL kick in the guts for the hard working people of the UK who just want to make life a bit easier for the people they leave behind.

Ns04

56blacksti

JUST TAX ALL OF IT IS WRONG

PeteBrant

Well the 40% is the upper earnings tax rate - I.e. anything you earn above £37,000 gross is taxed at 40% - it is therefore unsurprising anything above £285,000 is taxed at 40% in inheritance.

As for the government getting their share through other taxes, that happens with you monthly wage - I.e. you are taxed at source, and then pay VAT on pretty much everything you buy, plus savings tax, plus capital gains, plus stamp duty, plus fuel duty etc etc etc.

However, I do agree that the threshold is too low - House prices have risen well over 100% in the last 10 years, whereas the IHT threshold has risen 20%.

I do beleive that the amount of tax we pay is pretty much on the limit as to what the public will accept (having said that the British way is to grin and bear it as opposed to actually do anything about it).

jrmwrx

40% why should i be taxed for being good at what i do and taking a few risks along the way, nuff said.

Leslie

Doesn't matter what you say about inheritance tax, it is money which has been heavily taxed already and represents savings which parents want to pass on to their families. It is a grossly unfair tax.

Les

PeteBrant

But how does that differ from, say, your salary, which you pay tax on? The companies income which they pay you with will have been taxed, and the money that a customer used to pay the company will have been taxed.

The point that is being missed here the it is not the money that gets taxed, but the person.

kingofturds

iTrader: (1)

If they taxed the stupid ,that would see half the people on here bankrupt

Abdabz

Council tax for me
I pay £90 a month and all I really get in return is my wheelie bin emptied, speedbumps and striking firemen...

r32

I object to most taxes, but the worst are when they tax the tax. Petrol has a tax on it, and there's new car tax, but you are then forced to pay VAT on the tax ............. is this fair?

The Snug Rhino

IHT affected about 5% of deaths last tax year - so hardly the big deal everyone suggests.

and using "the average house price" is pointless as the average house has a mortgage on it and is owned by a couple who have £570k of nil band between them.

and the ONLY reason this is an issue of late is house prices and you will have paid NO tax on the gains you made as its not taxed for CGT.

hail-hail

But if you inherit a house and already have one, wouldn't this be classed a second home and therefore due for CGT?

New_scooby_04

iTrader: (4)

Aint that the truth!!!

That said, the poll tax seemed to cause some trouble IIRC

I was playing with my Transformers at the time though, so my recollection maybe of limited accuracy.

"That was one hell of a lazer blast" I commented to Megatron as a dustbin was chucked through our living room window by angry protestors!!

Ns04

EddScott

IHT takes the **** in my opinion.

However, there really is no need to pay it if you've got a decent adviser

PeteBrant

Ironic really, considering Poll Tax was a fairer system than Council tax.

New_scooby_04

iTrader: (4)

*sings* "It's like rain eeeeee ainnnnn on yer wedding day"



Yep!! It's all in the spin Pete!

mrs bootsy

The Snug Rhino

"But if you inherit a house and already have one, wouldn't this be classed a second home and therefore due for CGT?"

no - you would sell it and the gain would be inherited value less sale...ie. zero gain.

So my folks buy a house for £13k - i inherit it in 2015 for £600k and sell for zero gain, no CGT to pay.

CrisPDuk

I understand most of what you're saying there Pete, I don't agree with the principle, but that's a different discussion

The bit I don't understand is how stamp duty is analogous with IHT

CrisPDuk

That's the problem with IHT compared to most other taxes, it's the person who will be leaving the money who has to make the preparations, not the prospective benefactor. If you've got parent's like mine who are not even prepared to discuss the subject, let alone plan for it, you're screwed

SJ_Skyline

Cut and paste-tastic:

Take a deep breath and take your pick from the first 90 Labour introduced:

July 1997

01 • Mortgage Interest Tax Relief At Source (MIRAS) reduced from 15% to 10%
02 • Dividend Tax Credits for pension schemes abolished
03 • Income tax relief on health insurance abolished
04 • Insurance Premium Tax extended to some health insurance
05 • Road Fuel Tax escalator increased to 6%
06 • Vehicle Excise Duty increased
07 • Tobacco duty escalator increased to 5%
08 • Stamp Duty raised to 2%
09 • Carry back of Corporation Tax losses limited to 1 year
10 • Windfall tax on utilities

March 1998

11 • Tax relief for the married couple's allowance (MCA) cut to 10%
12 • Top rate of Insurance Premium Tax extended to travel insurance
13 • Exceptional increase in tobacco and alcohol duties
14 • Duties on casinos and gaming machines raised
15 • Road Fuel Tax escalator increase brought forward
16 • Tax on company cars increased
17 • Tax relief on foreign earnings abolished
18 • Tax concessions for certain professions abolished
19 • Capital gains tax imposed on certain non-residents
20 • Restriction of Capital Gains Tax relief on reinvestment
21 • Corporation tax payments on account brought forward
22 • Stamp duty increased again
23 • Certain hydrocarbon duties increased
24 • Additional diesel duties introduced
25 • Landfill Tax increased
26 • Double tax credits on certain dividends restricted

March 1999

27 • National Insurance Contributions earning limit raised
28 • NI Contributions for self-employed increased
29 • Tax relief of Married Couple's Allowance abolished
30 • MIRAS abolished
31 • Self-employed contractors to pay NI and income tax as if employees
32 • Company car business mileage discount limited
33 • Double escalator on tobacco duties
34 • Insurance Premium Tax increased to 5%
35 • Vocational training relief abolished
36 • Employer NI Contribution base broadened to include all benefits in kind
37 • VAT on some banking services increased
38 • Tax on reverse premiums paid to tenants by landlords introduced
39 • Duty on domestic fuel oils up
40 • Vehicle Excise Duty for lorries increased
41 • Landfill tax escalator introduced
42 • Stamp Duty rates raised again to 2.5/3.5%

March 2000

43 • Tobacco duties increased above inflation
44 • Stamp duty raised for 4th time, scope of duty extended
45 • Extra taxation of life assurance companies
46 • Rules on tax havens tightened up
47 • Company car taxes raised

2001

The Chancellor gives the exhausted nation a year off – no new stealth taxes!

April 2002

48 • Personal tax allowances frozen
49 • National Insurance threshold frozen
50 • NI Contributions for employers raised
51 • NI Contributions for employees raised [Class 1 up 1%]
52 • NI Contributions for self-employed raised
53 • North Sea taxation increased
54 • Duty on some alcoholic drinks raised
55 • Stamp duty thresholds frozen
56 • Tax relief on investment in film industy restricted
57 • Rules on corporate debt tightened
58 • Nil-rate threshold for inheritance tax raised by less than the rate of inflation

April 2003

59 • VAT imposed on electronically supplied services
60 • Domestic staff on £89/week to pay NI & income tax, employers to pay NI
61 • Betting duty increases
62 • Tax on red diesel and fuel oil increased
63 • Anti-tax haven rules tightened to cover more UK firms with Irish subsidiaries
64 • Vehicle excise duty raised
65 • Personal tax allowances frozen again

July, 2003

66 • £35 added to all fines and £3 added to the cost of a home insurance policy

September, 2003

67 • Price of petrol raised 7p per gallon (with the VAT)

October, 2003

68 • Up to 8 times increase in the stamp duty on leases for retail premises
69 • Airport Tax doubled

December, 2003

70 • 40% extra Council Tax on second homes was sneaked in while the Westminster Wonders were breaking up for their hols a whole week before Xmas.
Additional info : It has been pointed out that a number of councils gave an even bigger discount for second homes and the increase for some people can be 80%. Plus the usual 6-18% annual rise, depending on how bloated the council's operations have become.
Exemptions may be granted if the second home owner (1) has to live somewhere because of his/her employment, (2) the dwelling comes with the job, or (3) there are special threat/security reasons involved. All of which excuses apply to 10, Downing Street, the home of a certain Mr. Anthony B. Liar. (Thanks to M.K.)

January, 2004

71 • £60 per day fine for late submission of self-assessment income tax forms
72 • Traffic wardens to receive powers to impose fines for a whole bunch of offences to keep poor people off the roads. The offences will include parking more than 19 inches from the kerb (£100) and dithering by people who are lost over, and who don't know whether to make a turn or keep straight on
73 • A 'Victims Fund' surcharge fine on everyone who passes through the courts. £5 for speeding up to £30 for murder.
74 • Legal Aid for the middle classes abolished

February, 2004

75 • £40 per week charge to middle-class parents for formerly free nursery places
76 • £200 per year charge to middle-class parents for places on formerly free school buses
77 • £250 per hour charge from the fire brigade for non-fire-related call-outs, e.g. clearing up after road accidents and rescuing ***** cats from trees

March, 2004

78 • £550 tax rise (at standard rate) for people using a company van or people-carrier out of work time
79 • Council Tax will rise at least 7.4% next year (according to the Budget)
80 • The tax incentive for owner-operator small businesses to become companies abolished
81 • Tax on cross-border payments for goods and services between multi-divisional companies extended to transactions within the UK
82 • Tax on trusts up from 34% to 40%
83 • Duty on red diesel up 1p/litre above inflation (57% rise)
84 • Duty on liquefied petroleum gas (LPG) used as fuel up 1p/litre above inflation (45% rise)
85 • Personal allowances for taxpayers under 65 frozen

April 2004

86 • PEPs and ISAs containing shares lose their tax break on dividends and the annual ISA allowance cut by £2,000 to £5,000
87 • The 100% tax allowance for small businesses & self-employed on new computer/advanced telephone equipment cut to 50% for 2004/5 tax year
88 • Passports – in addition to costing twice as much as the present price of £42, the new 'biometric data' passports will be valid for half as long. They will have to be renewed every 5 years instead of every 10 years, which doubles the cost yet again.
89 • £100 per year 'lighthouse tax' on small boats over 8 metres long. Commerial shipping lines think they should pay £2.6million per year towards the annual £73million cost of maintaining lighthouses and navigational equipment.

May 2004

90 • Council Tax bills to rise a further £110 in the affected areas to pay for 'Two Jags' Prescott's regional assemblies
91 • Repeat prescriptions : They last only 56 days now. Previously, they lasted up to 112 days – so costs for some people have doubled. The logic, apparently, is that people often don't take all of their tablets; BUT it still means that those who do have doubled costs. And it means twice the work for hard-pressed GPs.
92 • Vehicle Insurance Premiums : In 1999, the law was changed to let NHS trusts reclaim treatment costs from motor insurance companies in cases where fault had been established and compensation paid. Insurance premiums have risen by at least £5 per year to pay for the charging regime.

PeteBrant

Whilst I don't doubt for one second that the tax burden has gone up, lists like these are meaningless without tax reductions/benefits.

Eg the 10% tax band, tax credits, new baby credit etc etc.

Problem with propaganda sites is that they never present a blanced picture, they always list all the facts that support thier cause, but never the ones that go against it.

Far better to take the average overall tax burden of 1997 vs 2007 to that end it was something like 36% and is now 37.9%, in 2008 it will be 38.5%

The highest in recent times was 38.8% in 1984

The tax burden across the EU as an average is 39.7% (although look at the public services tha say, France, enjoys)

Britian has a higher tax burden than the average of the 30 richest countries, which is 35.9%

The US, which currently has the fastest growing tax burden (the UK is second) has a rate of 26.8%


The other thing to remember is that there are 3.5 million more people paying tax than were in 1997.

SJ_Skyline

Pete - never let the facts get in the way of great propaganda!