£45,000 Inheritance Tax?!?

[Longcol 596]

Would I be right to infer that you will not be inheriting any property?

 

No I stand to inherit about the same as the OP - not bad for doing nothing really.

[Trabant 10]

No I stand to inherit about the same as the OP - not bad for doing nothing really.

But your relatives who currently own the house probably didn't do nothing, and they should have the right to pass the property on to their family without part of it being stolen.

 

Tax has already been paid on the income which bought the property, whenever that may have been.

 

Taxing property is very destructive - it penalises people for being sensible with their money.

[Longcol 596]

But your relatives who currently own the house probably didn't do nothing, and they should have the right to pass the property on to their family without part of it being stolen.

 

Tax has already been paid on the income which bought the property, whenever that may have been.

 

Taxing property is very destructive - it penalises people for being sensible with their money.

 

My parents never earned anywhere near the current value of the house in all their working lives - and they got tax relief of the mortgage interest for 25 years. The mortgage was £19k. The appreciation in the value of the property was nothing to do with their hard work.

 

Some people who have worked hard all their lives and were sensible with their money got absolutely nothing if they lived in a council house.

 

I thank my lucky stars I'm likely to get a huge windfall for nothing rather than whinge about the tax.

[Cyclone 10]

no disrespect - but you shouldn't advise anyone what t o do in a will.without knowing their background.

 

its illegal to gift a house and then live in it for free, its also well known for family members who inherit to kick out the living property owners.

it may not be possible for thew surviving parent to survive financially with a minimal amount left in a will.

all these things have to be considered.

 

I didn't suggest 'gifting' the house, I said leave the half of it when one parent dies to someone other than the remaining parent.

 

Any advice given on an internet forum is worth just about as much as the electrons it's printed with, it's just ideas that people should investigate further, not cast iron guarantees of how things should work.

[Trabant 10]

My parents never earned anywhere near the value of the house in all their working lives - and they got tax relief of the mortgage interest for 25 years. The mortgage was £19k. The appreciation in the value of the property was nothing to do with their hard work.

 

Some people who have worked hard all their lives and were sensible with their money got absolutely nothing if they lived in a council house.

 

I thank my lucky stars I'm likely to get a huge windfall for nothing rather than whinge about the tax.

When they had that mortgage it wasn't paid off for free, it was paid by them, from their income. Interest rates were higher than they are now, income was of course lower, so the 'paltry' £19000 represented a serious financial commitment at the time. Mortgage tax relief was only on a small proportion - I know, I used to get it.

 

They could have opted on the same income to live in a subsidised council property, spend their income on booze and holidays, and not worry about property.

 

Should their wisdom and investment really be penalised? I have a few hundred K in my house, a few hundred K in my parents property, and perhaps a third, wills depending, will come my way. Lucky old me. But those houses have all been paid for from taxed income, and I fail to see why people who spend their money on bricks and mortar should see it taken from them as reward for their sensible choices.

[Cyclone 10]

My parents never earned anywhere near the current value of the house in all their working lives - and they got tax relief of the mortgage interest for 25 years. The mortgage was £19k. The appreciation in the value of the property was nothing to do with their hard work.

 

Some people who have worked hard all their lives and were sensible with their money got absolutely nothing if they lived in a council house.

 

I thank my lucky stars I'm likely to get a huge windfall for nothing rather than whinge about the tax.

 

If you currently lived in that house and planned to continue doing so would you be quite so sanguine about having to find 45k from somewhere for the priviledge of staying in a house that has been paid for, no matter what the current value of it is?

[Longcol 596]

When they had that mortgage it wasn't paid off for free, it was paid by them, from their income. Interest rates were higher than they are now, income was of course lower, so the 'paltry' £19000 represented a serious financial commitment at the time. Mortgage tax relief was only on a small proportion - I know, I used to get it.

 

They could have opted on the same income to live in a subsidised council property, spend their income on booze and holidays, and not worry about property.

 

Should their wisdom and investment really be penalised? I have a few hundred K in my house, a few hundred K in my parents property, and perhaps a third, wills depending, will come my way. Lucky old me. But those houses have all been paid for from taxed income, and I fail to see why people who spend their money on bricks and mortar should see it taken from them as reward for their sensible choices.

 

Mortgage tax relief was a damn site more up to the '80's - I remember working in NHS salaries and wages - some top docs had tax codes that meant they got nearly half their salary tax free!

 

My folks managed a couple of good holidays every year after us kids had left home - and my dad has a pretty handy wine cellar thank you.

 

I really can't see why you class property as "a worry" - more like a fast appreciating asset - the appreciation in value absolutely nothing down to my folks "wisdom" - like most folks their generation they "got lucky" with property (and final salary pensions).

 

Sorry but I can't see why I should expect a windfall equivalent to something like 20 years income at the national average wage without the tax man taking a slice - otherwise the gap between the haves and have nots will get even worse than it is now.

[Trabant 10]

I really can't see why you class property as "a worry" - more like a fast appreciating asset - the appreciation in value absolutely nothing down to my folks "wisdom" - like most folks their generation they "got lucky" with property (and final salary pensions).

I detect some lefty envy here.

Maybe you should persuade them to leave it all to charity?

 

Sorry but I can't see why I should expect a windfall equivalent to something like 20 years income at the national average wage without the tax man taking a slice - otherwise the gap between the haves and have nots will get even worse than it is now.

Forget the value of the property. If you inherit your family home, it doesn't matter whether it's worth £5 or £500k if you want to live in it.

For most people, the value of their house is purely academic up to the point they die, then we're left with the situation where somebody might find themselves with a tax bill of 4 times their annual income in order to remain in their family home.

 

Should we penalise all property owners with a big tax bill just to punish them for being lucky enough to own property over the last 20 years of price rises?

[Guest_225 10]

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

 

I don't understand the thinking behind this post.

 

Why should the government get any of the value of the house when it was paid for by income that they had already taxed once?

[Trabant 10]

I don't understand the thinking behind this post.

 

Why should the government get any of the value of the house when it was paid for by income that they had already taxed once?

For the same reason that socialists don't like the idea of people who study hard, work hard and build a successful career actually earning more and having a better lifestyle than people who can't be bothered and won't push themselves.

That old chestnut: the politics of envy.

[Longcol 596]

Why should I be envious when I stand to inherit over £350k ??

 

Abolish inheritance tax and we shove more taxation down on to people just as hard working as us who aren't fortunate enough to inherit from hard earning parents who didn't earn enough to buy their own houses, or often found it difficult to get a mortgage if they were on a weekly wage - (scroungers are a different matter altogether).

 

And how many of us will continue to live in our family home - seems like this is an excuse trotted out most of the time by people who don't want a very large windfall taxed. By all means protect those have to remain in the family home - but most of us aren't going to.

[willman 10]

I didn't suggest 'gifting' the house, I said leave the half of it when one parent dies to someone other than the remaining parent.

 

Any advice given on an internet forum is worth just about as much as the electrons it's printed with, it's just ideas that people should investigate further, not cast iron guarantees of how things should work.

 

 

leaving it, bequeathing it, gifting it all the same in the eyes of the law.

an gifting it causes as many problems as it solves.

 

any advice given anywhere can always be taken seriously and suddenly becomes an urban legend, like being able to sell the house to your kids for a £1.