IHT

Germanshepherdsmum

Exactly Norah. And the amount of interest paid (out of taxed income after MIRAS ended) over the life of a mortgage is far greater than the original purchase price. Of course if the value of someone’s home hasn’t risen hugely they won’t have to pay so much - if any - IHT.

Indeed. My list was certainly not in order of cost!

IMO, interest on home loans typically adds so much to home-ownership costs - all complaining to 'London rates' is silly.

We have already been given the exact figures, Dizzyribs. Very good programme though.

Martin Lewis did a bit about this on his programme tonight. Might be worth checking it out on catch up (or maybe it’s on his website? He gave the exact figures and had legal experts there to check with.

Exactly Norah. And the amount of interest paid (out of taxed income after MIRAS ended) over the life of a mortgage is far greater than the original purchase price. Of course if the value of someone’s home hasn’t risen hugely they won’t have to pay so much - if any - IHT.

paddyann54

When the head of state is a happy...willing to pay IHT on vast sums he inherited then I'll be happy to pay .Until then I'll check and double check so my kids get the benefit of the over 100 working years between their dad and I .Thats over 100 years of paying tax in an area where housing has never risen at London rates or nowhere near them so its money earned .

3rd attempt at quoting

This is what I was attempting to quote.

I agree.

I would add no matter the house price increase at London or anywhere rates -- people have paid costs to move house, procure a loan, pay for a solicitor, pay for surveys, pay a deposit, interest, stamp duty, upgrades and VAT on such, decorating, upkeep, etc etc -- the money gained upon sale is not free.

I would question your definition of ‘wealthy’. Approximately 4% of estates attracted IHT in 2021/2. It is estimated that each year between 30,000 and 50,000 people have to sell their homes in order to pay for care, taking their estates out of IHT. Leaving aside your personal circumstances, of which you have told us, would you honestly say that a single or divorced person whose estate was worth £350k, or £500k if it included their house, was wealthy?

Germanshepherdsmum

Not at all. The lord of the manor benefitted from the death of every tenant - at least everyone now has a threshold before tax is payable.

But these days, the "lord of the manor" doesn't benefit. Maizie is correct. IHT has the not very significant effect of preventing wealthy families from accumulating even more wealth, so is the opposite of what happened in the past.

Not at all. The lord of the manor benefitted from the death of every tenant - at least everyone now has a threshold before tax is payable.

Germanshepherdsmum

How very sympathetic Maizie. IHT has its roots in the feudal system when on the death of a manorial tenant their best beast had to be given to the lord regardless of the circumstances of the family left behind. We should have moved on by now.

I very much doubt it, but regardless of its possible feudal roots IHT is a very weak attempt to prevent wealth being concentrated in the hands of fewer and fewer people. Rather the reverse of the manorial dues, in fact.

When the head of state is a happy...willing to pay IHT on vast sums he inherited then I'll be happy to pay .Until then I'll check and double check so my kids get the benefit of the over 100 working years between their dad and I .Thats over 100 years of paying tax in an area where housing has never risen at London rates or nowhere near them so its money earned .

Martin Lewis discussing IHT now on ITV.

He has also said “Get married” is the best way to deal with IHT.

How very sympathetic Maizie. IHT has its roots in the feudal system when on the death of a manorial tenant their best beast had to be given to the lord regardless of the circumstances of the family left behind. We should have moved on by now.

Chocolatelovinggran

My modest semi in Kent will take me over the threshold - I'm divorced. Not much I can do about it. As others have said, I have mixed feelings about this as I am a believer in paying taxes, but feel that the money I invested in my property has already been taxed once...

If your property has increased in value since you bought it, the amount by which it has increased has not been subject to any taxation.

Just saying.

Thanks Dickens - it does indeed make up for the goady posts, always from someone who would never dream of asking for advice and who queries my qualifications (or even my ability to think logically!). That I had a duty to help people with legal problems so far as I could was something drummed into me when I qualified many years ago and I have always taken that very seriously, whether they could pay or not.

Germanshepherdsmum

Perhaps people will realise it’s not ‘just a piece of paper they don’t need’. Who would willingly give 40% of their estate above a certain amount to the Treasury? Haven’t we all paid plenty of tax already? The ‘we don’t need a piece of paper’ principle can be expensive not only to you but to people who might otherwise inherit when you die.

It amuses me when there's questions about IHT, etc, and posters cry, "where's GSM when you need her?"

... makes up for all those, ahem, more goady posts where some have been less than civil about your credentials.

Thanks for posting - your services are indispensable!

Perhaps people will realise it’s not ‘just a piece of paper they don’t need’. Who would willingly give 40% of their estate above a certain amount to the Treasury? Haven’t we all paid plenty of tax already? The ‘we don’t need a piece of paper’ principle can be expensive not only to you but to people who might otherwise inherit when you die.

Germanshepherdsmum

Yes, you will. Marriage or civil partnership is worth money!

Yes, indeed this is true. I attended a professional update course relating to IHT planning very recently and one of the presenters said sometimes the best tax planning advice he can give is to take a quick trip to the register office!!!

Never mind, so long as people understand - and if you have all the relevant professionals saying the same thing it’s comforting!

Well said GSM. It’s clear that posters aren’t reading the thread and repeating the same figures and information ad nauseam.

Thank you GSM.

Posters will hopefully be comforted by having had the same responses from a solicitor, a financial advisor and a chartered accountant!

Yes, you will. Marriage or civil partnership is worth money!

Daft question - I live with my partner in his house which will pass to his daughter on his death. I rent out my house which will pass to my daughter on my death. If he should pre-decease me I will return to my house. We do not have a civil partnership. I assume we will both be taxed separately as if single