If you can manage financially - would you pay more tax, for better public services?

So, are we suggesting the recipient isn't deserving? Is the government more deserving? I don't think so.

Whitewavemark2

Nice amount of unearned income though to the recipient.

Spoken like a true LP member. Will your estate attract IHT?

On one hand I feel that if I have it I should pay the requisite amount of tax, on the other most of what I have has come about from careful husbanding of taxed income other than the house. Like so many, I have gone from our first house in 1963 bought for just under £3K to my current house worth which would probably fetch well in excess of half a million, so if I died tomorrow inheritance tax would be payable. In all conscience I couldn’t look at tax avoidance but can’t start giving money away as I don’t know how long I will live and possibly need expensive care. Not sure there is a solution but I am in this fortunate position because we have been careful and provident and of course benefited from the ludicrous rise in house values. I wish one could dictate how one’s money was spent by the Treasury!

GrannyGravy13

Whitewavemark2

Nice amount of unearned income though to the recipient.

As are lottery wins, premium bond wins or any prize

Any money inherited has already been taxed numerous times.

This ^

Inheritance tax is unfair, unjustified, and taxes have already been paid tens of ways on the inherited sum. Perhaps set the lower limit 5x higher.

Well they’d better not start taxing my bingo wins (or wings 😂) GrannyGravy!

Whitewavemark2

Nice amount of unearned income though to the recipient.

As are lottery wins, premium bond wins or any prize

Any money inherited has already been taxed numerous times.

Nice amount of unearned income though to the recipient.

Katie590

Gin

Chocolatelovinggran. Sorry, I was looking at Inheritance Tax from my own point of view and as a married person the spouse can have their partners allowance which adds up to a tidy sum. We live in Bucks so not a cheap area for housing.

There is no justification whatever for giving a couple nearly £1m free of inheritance tax that is far too high.

As our late Queen (allegedly) said opinions may differ

U.K. has the fourth highest IHT in the world!

£1,000,000 doesn’t go as far as it used to especially here in the South East.

Gin

Chocolatelovinggran. Sorry, I was looking at Inheritance Tax from my own point of view and as a married person the spouse can have their partners allowance which adds up to a tidy sum. We live in Bucks so not a cheap area for housing.

There is no justification whatever for giving a couple nearly £1m free of inheritance tax that is far too high.

Chocolatelovinggran. Sorry, I was looking at Inheritance Tax from my own point of view and as a married person the spouse can have their partners allowance which adds up to a tidy sum. We live in Bucks so not a cheap area for housing.

Tax certainly needs to increase if we are to get the public services we all want and need. But where from is the pertinent question. A good starting place would be closing the loopholes and dealing with the tax havens which are mostly linked in some way with the UK eg Guernsey, Cayman Isles. Russian oligarchs buying up and sitting on London property distorting the property market for us all should be dealt with. It’s not all about taxing working people. Make Starbucks and the rest of the US giants pay their fair share.

Denmark much smaller population, high taxation, manage economy better giving better growth, oil and gas which is mostly exported not home consumed.
Norway, very high taxation, oil and gas, plus hydro electricity and a lot of mineral extraction, GDP per head is around double the UK

Wasn't it North sea oil with Norway? A big quota & a much smaller population than us. It wIll be winding down now though.I'm another who would pay more tax for better public services, in principle and in UK's present situation.

Fewer migrants, old people and benefits claimants? Genuine question, I have no idea but am interested in the higher GDP per capita.

wendyann23

Most countries in Europe have higher tax rates than we do and better services because of this. They also score far higher on the happiest countries list than we do.

Denmark was mentioned, similar system to UK, similar taxation, similar healthcare spending too, around 10% of GDP.

The difference is a much higher GDP per head of population, Norway is much higher again, the UK is lagging badly behind, other countries simply have better performing economies

Absolutely.

Most countries in Europe have higher tax rates than we do and better services because of this. They also score far higher on the happiest countries list than we do.

Joseann

Norah

Joseann

Stamp Duty should go way up, Inheritance should be zero.
I agree with most of your list Norah, but not that stamp duty should go way up. Particularly not for the many downsizers, maybe on this thread, whose sale of a large property would free up housing for families. They should be exempt.
And I agree with Chocolatelovinggran that the Inheritance Tax threshold is distorted by the expensive location in which you might live.

Buyers pay stamp duty, not sellers, sale of a large un-mortgaged property will free up money to buy a smaller, presumably more reasonable property. First time buyers have a big exemption. Perhaps I'm missing something?

Yes, inheritance tax is distorted by a lot of factors.

Yes, Norah, I worded that a bit clumsily. Sellers don't pay stamp duty, I realise, but they do in turn become buyers who do. Downsizing isn't necessarily downspending. Our 4 bed in London sold for nearly £1million and we moved to a 2.5 bed on the coast which wasn't far off in terms of price. So smaller doesn't always mean cheaper.

I admit to being unable to work out ways for taxes to be fair, and admit to never having moved. I only make suggestions that seem sensible to me. I certainly understand why my ideas don't appeal to all.

However it happens, better taxation methods need to occur.

It certainly doesn’t, Joseann. When we move again it will be in order to dispense with stairs, but another home will cost at least as much as our present one is worth because the area is expensive (and I confess to being fussy and liking places with character, as we have now).

I'm embarrassed to say, I'm a serial mover, probably 12 times, so quite alot for the coffers there from high-ish value properties. It would be nice if once, in my old age, I became exempt. 🏠

Norah

Joseann

Stamp Duty should go way up, Inheritance should be zero.
I agree with most of your list Norah, but not that stamp duty should go way up. Particularly not for the many downsizers, maybe on this thread, whose sale of a large property would free up housing for families. They should be exempt.
And I agree with Chocolatelovinggran that the Inheritance Tax threshold is distorted by the expensive location in which you might live.

Buyers pay stamp duty, not sellers, sale of a large un-mortgaged property will free up money to buy a smaller, presumably more reasonable property. First time buyers have a big exemption. Perhaps I'm missing something?

Yes, inheritance tax is distorted by a lot of factors.

Yes, Norah, I worded that a bit clumsily. Sellers don't pay stamp duty, I realise, but they do in turn become buyers who do. Downsizing isn't necessarily downspending. Our 4 bed in London sold for nearly £1million and we moved to a 2.5 bed on the coast which wasn't far off in terms of price. So smaller doesn't always mean cheaper.

Germanshepherdsmum

We paid a significant amount of stamp duty when we downsized. We will probably move again, and pay stamp duty again. It’s a very big addition to the cost of moving.

It is.

Generally I'm not a fan of moving house, just to move house. I know many like to move house. Houses for courses and all.

It would certainly be helpful if along with one exemption for first time buyers - one exemption for over 70s could also apply?

We paid a significant amount of stamp duty when we downsized. We will probably move again, and pay stamp duty again. It’s a very big addition to the cost of moving.

Joseann

^Stamp Duty should go way up, Inheritance should be zero^.
I agree with most of your list Norah, but not that stamp duty should go way up. Particularly not for the many downsizers, maybe on this thread, whose sale of a large property would free up housing for families. They should be exempt.
And I agree with Chocolatelovinggran that the Inheritance Tax threshold is distorted by the expensive location in which you might live.

Buyers pay stamp duty, not sellers, sale of a large un-mortgaged property will free up money to buy a smaller, presumably more reasonable property. First time buyers have a big exemption. Perhaps I'm missing something?

Yes, inheritance tax is distorted by a lot of factors.

Iam64

Grandma70s

Most European countries have higher tax rates than the U.K. - and better services. In Denmark it’s nearly 56%.

This

If you add NI to income tax the taxation rate is very similar, healthcare costs are similar at around 10% of GDP, more during Covid.