Gransnet forums

News & politics

Inheritance tax

(192 Posts)
Oldwoman70 Tue 02-Jul-19 11:09:01

What do other GNs think of John McDonnell's plans for Inheritance Tax. Basically, as I understand it, a parent can only gift or leave a total of £125,000 to a child, any monetary gifts given during your lifetime would be counted towards that £125,000.

Oldwoman70 Tue 02-Jul-19 11:15:18

Should have added - before inheritance tax is charged

EllanVannin Tue 02-Jul-19 11:26:37

He can take a running jump !

Inheritance tax used to be the bane of my life having paid out hundreds in the past-----for what ? People who had already paid into the system all their working lives then squeezed again until their pips squeaked, after they were dead.

I could have bought a mansion with what the tax-man took over the years.

M0nica Tue 02-Jul-19 11:27:06

Can't see any problem - and our children would be adversely affected by this measure.

gillybob Tue 02-Jul-19 11:35:32

I doubt this would affect me as sadly I will have very little to leave my children.

I can see both sides if I’m honest .

suziewoozie Tue 02-Jul-19 11:39:05

I’ve paid into the system all my working life but I still have to pay income tax on any income I receive - I don’t quite understand why capital I receive should be tax free.

Vonners Tue 02-Jul-19 11:46:35

Wondering how they would calculate monetary gifts given during my lifetime?
Do banks keep track of everything for 60ish years?

dragonfly46 Tue 02-Jul-19 11:48:53

I reckon we have given our children millions over the years but how they will add it up I have no idea.

Liz46 Tue 02-Jul-19 11:50:03

Yes, I was just wondering that Vonners. I have helped out my children but do not know how much I have given them.

quizqueen Tue 02-Jul-19 11:53:21

Socalism has always equalled jealously. Instead of striving to have what others have, they just want to take it away from them.

gillybob Tue 02-Jul-19 12:05:42

I reckon we have given our children millions over the years

Blimey shock

I was thinking that maybe the new proposals could perhaps go a tiny way to even out the gap between rich and poor ? I have never inherited a penny for anywhere , nor will I ever . My children will not inherit anything worth having either . Those who are fortunate enough to have money and/or valuable property to pass on are giving their future generations a massive “leg up” . Not begrudging in the slightest, just saying it endures money stays in the same families.

gillybob Tue 02-Jul-19 12:07:44

I don’t agree quizqueen no one wants to take anything away from anyone, but society is becoming more and more unequal with the rich getting so much richer and the poor being unable to get out of the poverty trap . It’s as though we are heading backwards .

EllanVannin Tue 02-Jul-19 12:12:53

It is horrible gillybob. The great divide !!

gillybob Tue 02-Jul-19 12:16:59

I really don’t know the answer to a fairer society other than perhaps through taxation . Taking those on low incomes out of taxation altogether and increasing the tax for the highest earners . And sadly yes probably capping the amount anyone can inherit before being taxed at the relevant rate . Not popular here on GN is suspect .

EllanVannin Tue 02-Jul-19 12:21:19

I gave my family the " leg-up " a few years ago while I was still alive rather than them struggling when I was sitting on so much at the time. Why should they have to wait before you snuff it ?
I was more than prepared to settle myself in an independent but supported property for the rest of my years. It's their turn now ! What did I need in a large rambling high-maintenance Victorian house ? It would have been sold for " care for the future " anyway.

I'm not down on my uppers yet and have everything I want.

love0c Tue 02-Jul-19 12:22:01

Absolutely dreadful and very unfair! Government theft in my opinion. If my husband and I try to save for our later years and wish to pass it on to our children it is our prerogative to do so!

GrannyGravy13 Tue 02-Jul-19 12:22:35

How on earth are the LP going to calculate what parents have given their children??

What will be counted?

University Fees

Driving Lessons

Car

Help with deposit/house renovation

Prams/cots/ etc for Grandchildren.

We are taxed all our flipping lives, please let us pass on to our loved ones what we have accrued.

Or should we just spend the lot and then let the state look after us??

Oldwoman70 Tue 02-Jul-19 12:24:05

This doesn't affect me as I don't have children but I think a lot of people who worked to buy their homes hoping to leave it to their children will be caught in this, as I recall many GNs were against having to use their property to fund care home fees for that reason

Hetty58 Tue 02-Jul-19 12:27:27

Inheritance tax is meant to redistribute wealth for the common good (rather than pass it on down the generations in rich families). I'm all in favour of that idea, despite the fact that my children will lose money. Of course, it's an unfair system as there are many legal ways to avoid paying or reduce the amount involved. Only certain types of property and possessions are counted e.g. houses, money in banks, cars etc.

granny4hugs Tue 02-Jul-19 12:30:40

Sort of interesting but as our generation ruined the planet for the upcoming generations - is TAX really going to be in issue any time soon? There will be far more interesting things to worry about other than protecting assets so that the nasty government can't spend all that squirreled away cash on silly things like schools and hospitals and roads... Dear lord.

Anniebach Tue 02-Jul-19 12:37:01

My mother in law who died last week has left her house and savings to my younger daughter and three grandchildren.

It means my two granddaughters will have a deposit for a house , my grandson can pay off some of his mortgage,

Their father is a carpenter, he could never give them this financial help, my younger daughter and grandchildren are inheriting what would have been my husband had he lived .

My in-laws always worked and paid tax , why should it be taxed again

paddyann Tue 02-Jul-19 13:03:11

I think there has to be IT,but I think it should be sensibly calculated.The richest of course wont pay because they will have "creative" accountants and trusts in place etc .For the ordinary man/woman who have just a home and a savings account then it would be very unfair to have that taken away.Unless the rich are treated exactly the same then its not workable .

Jane10 Tue 02-Jul-19 13:26:46

My savings are from my own already taxed income. I don't think the state should be expected to provide care for me in my old age as I think I should pay for it myself. However, I don't think anything I have left should be taxed when I'm gone.
Two bites of my precious savings cherry? Cheerio Mr McDonnell.

eazybee Tue 02-Jul-19 13:56:59

I don't approve of McDonnell's idea at all. I see it as taking from the hard-working and prudent and giving to the feckless.

M0nica Tue 02-Jul-19 14:17:25

Having been far more fortunate than most, which enabled us to give our DC a good education when state education hit its lowest level in the 1980s under Mrs Thatcher and support them through further education to good careers, plus we both inherited money from parents and god parents.

I think the very least I can do is help those who have not been so fortunate, apart from paying all tax due on my income, is pay a sum from my capital towards providing the government enough revenue to be able to expand the sadly shrunk welfare state.

Labour are not talking about confiscating money above £125,000 per recipient, just taking a share of it.

I think to do or think otherwise is selfish.