£45,000 Inheritance Tax?!?

[truckle 10]

I was looking at the inheritance tax calculator at http://www.surewill.co.uk/inheritance_tax_calculator and it turns out that when my folks are 'no more' so to speak, I'll have to pay around £45k of inheritance tax! Most of that is because of the house, which is only a modest semi-d. With house prices going up every year, I was just wondering how many other people are in a similar situation. The website talks about avoiding the tax, can anyone shed some light on how I might go about doing that?

 

Thanks!

[max 13]

Not bad though, £45k for a £400k house for which you've not paid a penny.

[Heyesey 11]

Your parents can give you (or whomever they wish to get it, of course) a part-share in the house (you'll need legal proof that it has been done) and, provided they live seven years beyond the date of the gift, that part of the house is not inherited and not subject to the tax.

 

There are limits to how much wealth can be given away in this fashion; I have no idea what the limits are nowadays.

[fritzthecat 10]

And neither have the goverment, the money is not theirs, they no doubt paid tax on everything, this tax is just another tax grab by this greedy goverment

 

truckle, i wish you good luck and get what your parents obviously want you to have

[poppins 10]

I was looking at the inheritance tax calculator at http://www.surewill.co.uk/inheritance_tax_calculator and it turns out that when my folks are 'no more' so to speak, I'll have to pay around £45k of inheritance tax! Most of that is because of the house, which is only a modest semi-d. With house prices going up every year, I was just wondering how many other people are in a similar situation. The website talks about avoiding the tax, can anyone shed some light on how I might go about doing that?

 

Thanks!

 

 

Why not let a good nursing home have your parents house so they'll be well taken care of in their old age, this way you won't have to worry about paying tax .

[Thunzi 10]

There are limits to how much wealth can be given away in this fashion; I have no idea what the limits are nowadays.

I believe it is £3000 total, be that to one person or spread over several different people.

[Heyesey 11]

You could, of course, vote Tory and ask your parents to do the same, as they are increasingly considering abolishing inheritance tax altogether.

[Cyclone 10]

I believe it is £3000 total, be that to one person or spread over several different people.

 

I thought it was 7k/annum/person.

[Cyclone 10]

Not bad though, £45k for a £400k house for which you've not paid a penny.

 

taxed when you earn it, taxed when you spend it, taxed extra when you buy a house and taxed when you die and leave the house to offspring.

 

Perfectly fair, why would anyone complain?

[upholder 10]

Not bad though, £45k for a £400k house for which you've not paid a penny.

 

Keep em coming Max, every post of yours means even less labour votes.

 

[Thunzi 10]

I thought it was 7k/annum/person.

I'm not totally sure, that's the figure that has been banded about in family discussions as we are currently going through this. There is definitely a total figure though, you can't leave large sums to several family members so no tax is paid.

[GabbleRatcht 10]

Why should you have to pay inheritance tax at all? I'm a socialist but it makes no sense. Your parents/ benefactor paid tax on what they earned so why should you have to pay it again.

 

Here is possibly the most stupid tax

 

Look at old buildings and you will see where they bricked up windows to avoid it.