OV9

Additional residence SDLT surcharge goes up by 2% to 5% from tomorrow. I doubt it'll do much apart from cause a brief 2% dip in sale prices.

Simon wrote: Wed Oct 30, 2024 1:15 pm IHT could've been worse. Still an immoral tax though.

Why?

ZedLeg wrote: Wed Oct 30, 2024 1:19 pm

Simon wrote: Wed Oct 30, 2024 1:15 pm IHT could've been worse. Still an immoral tax though.

Why?

Because it's a tax on already taxed wealth.

[Ignore the fact that any capital gains are waived on death so CGT is avoided...]

Not so bad overall, but does seem like they're hammering smaller businesses.

Jobbo wrote: Wed Oct 30, 2024 1:21 pm

ZedLeg wrote: Wed Oct 30, 2024 1:19 pm

Simon wrote: Wed Oct 30, 2024 1:15 pm IHT could've been worse. Still an immoral tax though.

Why?

Because it's a tax on already taxed wealth.

[Ignore the fact that any capital gains are waived on death so CGT is avoided...]

I see concentrated intergenerational wealth as a bigger problem than taxing that wealth tbh.

Jobbo wrote: Wed Oct 30, 2024 1:21 pm

ZedLeg wrote: Wed Oct 30, 2024 1:19 pm

Simon wrote: Wed Oct 30, 2024 1:15 pm IHT could've been worse. Still an immoral tax though.

Why?

Because it's a tax on already taxed wealth.

[Ignore the fact that any capital gains are waived on death so CGT is avoided...]

Yes. Because wanting to provide for your children is the most natural thing in the world, especially when you are left with questions about how they will make their way in the world when you're not here. So yes, its outright immoral, but those who will never have to write that cheque are happy for other heirs to do so because it's the policy of envy.

Ah politics of envy again.

Nothing to do with being envious, I just don’t think paying a percentage on a substantial estate is that big a deal.

ZedLeg wrote: Wed Oct 30, 2024 1:24 pm

Jobbo wrote: Wed Oct 30, 2024 1:21 pm

ZedLeg wrote: Wed Oct 30, 2024 1:19 pm

Why?

Because it's a tax on already taxed wealth.

[Ignore the fact that any capital gains are waived on death so CGT is avoided...]

I see concentrated intergenerational wealth as a bigger problem than taxing that wealth tbh.

It's a ridiculously low limit. Put it to 10 million if you are taking about concentrated intergenerational wealth. At current levels it taxes a southern middle class family,

And yes, I hate it because 'we' will be paying it, when really I want to pass that money down to our children so when I die I won't worry about but future.

ZedLeg wrote: Wed Oct 30, 2024 1:27 pm Ah politics of envy again.

Nothing to do with being envious, I just don’t think paying a percentage on a substantial estate is that big a deal.

It's not substantial. The end.

£375k is a substantial amount of money. Is this that thing where the middle classes have completely lost touch with reality again?

ZedLeg wrote: Wed Oct 30, 2024 1:24 pm

Jobbo wrote: Wed Oct 30, 2024 1:21 pm

ZedLeg wrote: Wed Oct 30, 2024 1:19 pm

Why?

Because it's a tax on already taxed wealth.

[Ignore the fact that any capital gains are waived on death so CGT is avoided...]

I see concentrated intergenerational wealth as a bigger problem than taxing that wealth tbh.

Sometimes I think your politics are very reasonable and fair. But you're basically espousing communism here. Even if there were enough people who agreed with you, what do you think would happen? The reality is that nobody would die with any wealth except unexpectedly. So it wouldn't raise much.

TBH I don’t really have a problem with raising the threshold to something like £1mil.

It always baffles me when people are like £300k is not a lot because it’s what a house costs where they live.

That’s a sign that the housing market is fucked not that having that much money to pass along is average.

ZedLeg wrote: Wed Oct 30, 2024 1:33 pm TBH I don’t really have a problem with raising the threshold to something like £1mil.

Is that a massive volte face or can you rationalise that with your previous comments?!

Not really, £375k is a substantial amount of money. I was just suggesting a point of compromise.

That used to be a thing in political discussions right?

You're missing the point here. A significant issue intergenerationally is that because of the price of housing, many people in the south will spend disproportionately more on housing costs during their lifetime which is likely to lead to many underfunding their pensions.

Inherited property will in many cases be that person's pension given they will likely be in their 50s or older when they come into it. Taxing that further likely leads to a direct reduction of income in retirement for many people.

It may lead to a windfall for someone with parents in an expensive area if you live in the north or regions but that is just one of those things. £300k is a one bed flat in much of the south.

Jobbo wrote: Wed Oct 30, 2024 1:19 pm Additional residence SDLT surcharge goes up by 2% to 5% from tomorrow. I doubt it'll do much apart from cause a brief 2% dip in sale prices.

It was already 4% in Jockland (I think).

I’ve covered that, £300k is still a lot of money even if it doesn’t buy much round London but as a nod to compromise put the threshold at £1mil

It’s worth bearing in mind that if you have a £500k inheritance to pass, you’ll pay about £70k unless I’ve misunderstood how it works. It’s not going to leave your kids in the poor house.

Inheritance tax will always fuck someone over or benefit them depending on where they are, I'd suggest that what really needs to happen is for it to be burned to the ground and rebuilt from scratch to accomodate for modern financial issues like property price bubbles and localised weighting.

A horrendous task, but there must be a better way?

It’s hilarious to me that in one place I’m talking to people who are worried about losing access to healthcare and their ability to pay for necessities and in another people are moaning about paying a percentage on hundreds of thousands of pounds.

What happened to everyone having to make sacrifices?