IHT- how to avoid if you have enough wealth

IHT has to be paid within six months of a persons death, HMRC charges interest after this.

IHT has to be paid before probate is granted as Plunger has posted.

How many people can afford to pay IHT, not the majority of middle earners I bet!

Then there is potentially an argument to be made for extending the interest-free period, or expediting the process for sorting things out.

The mismatch between the timings is not an argument for not extending the reach of IHT, as far as I can see.

After reading this thread I’m glad I haven’t got enough, as things stand, to pay any IHT.
The argument about housing increasing in value holds no water with me. We are not paid some tax back on the things we buy when they depreciate in value eg cars, so I have no truck with paying tax on value accrued on my modest house.
I am a good citizen already. I don’t need to virtue signal about my citizenship by paying more to our government, whichever party happens to be in power. I taught in schools for many years, mainly in underprivileged areas, helping children to achieve their full potential, a much more useful contribution than paying a bit more tax to governments who have a great propensity to waste taxpayer’s money. I raised three children to be well qualified and independent, who additionally pay a great deal more tax than I ever did due to our decision to put them through (very minor) independent schools from age eleven. Neither son even gets a tax allowance due to their earnings.

Thank you BevSec for your kind comment.

I shall now get on with getting rid of some of our savings on our Golden Wedding trip to the Galapagos. We arrived yesterday in Quito, Equador and are relaxing today at the Marriott hotel in preparation for our final flight tomorrow to the islands. Tonight we will be taken on a guided tour of the city, along with our other fellow travellers. We have already met another British couple who will be cruising with us, although most seem to be American. This seems like a good use of our savings.

Yes, there are plenty loopholes in the IHT set up. I have already maxed out areas where funds can be protected. Since the clear intention of the new government is to promote Muslims in society and disadvantage those of us who have worked and made fiscal contributions all our lives, I now have stopped any giving to charities at all linked with abroad and have settled to enjoying the benefits I receive, such as free prescriptions, bus passes, concessions at concerts. Makes me want to make as many unnecessary bus trips as I can!!! If I get thrown in jail for this remark, my food bill will be on the government. People said in July it was time for a change…sadly they did not have the whit to realise what the implications of the change would be for Keir s “working people”. Meanwhile just watch thousands of illegals coming in each week illegally, multiplied by 5 or 6 when they want to ship in relatives, undoubtedly at taxpayer expense. For how long will they continue to claim that the previous govt left a mysterious black hole? It’s all a bit of a laugh, but not really funny!

I am just waiting to see how long my post survives under the new assaults on free speech. Clock ticking……….

What does ‘promote Muslims in society’ mean, please?

Rondoallature, not long I think!

Our house, hands off I say. 40 years hard work has been invested in our house.

Rondoallaturc

Yes, there are plenty loopholes in the IHT set up. I have already maxed out areas where funds can be protected. Since the clear intention of the new government is to promote Muslims in society and disadvantage those of us who have worked and made fiscal contributions all our lives, I now have stopped any giving to charities at all linked with abroad and have settled to enjoying the benefits I receive, such as free prescriptions, bus passes, concessions at concerts. Makes me want to make as many unnecessary bus trips as I can!!! If I get thrown in jail for this remark, my food bill will be on the government. People said in July it was time for a change…sadly they did not have the whit to realise what the implications of the change would be for Keir s “working people”. Meanwhile just watch thousands of illegals coming in each week illegally, multiplied by 5 or 6 when they want to ship in relatives, undoubtedly at taxpayer expense. For how long will they continue to claim that the previous govt left a mysterious black hole? It’s all a bit of a laugh, but not really funny!

Please explain what Muslims have to do with IHT.

Since the clear intention of the new government is to promote Muslims in society and disadvantage those of us who have worked and made fiscal contributions all our lives,

So many questions: promoted to what? Is there an application process, or is there some form of auto-enrolment? What is the timescale? Is there any age limit? What happens if some people don’t wish to be promoted? Are Muslims who have worked and made fiscal (I think you mean financial, btw) contributions all their lives exempt? Where can people find more information on this exciting scheme? #askingforafriend

I don't think any of us will get an answer. Just a dark hint that if the racist post has been reported and removed it is as a result of a plot to remove freedom of speech, or to foil the dastardly plan to bankrupt the government by riding on buses all day.

Please, HQ, let it stay, so people can see it in all its inarticulate glory?

Just a little side note about accountants. I spent many years working as a National Insurance Inspector and State Retirement Pension administrator. In my experience accountants were experts on tax avoidance (for businesses) but the consequence of this was that the minimum amount of National Insurance to qualify for a State Pension was not paid.

This resulted in many, usually wives, not qualifying for any State Retirement Pension. This led to many distressing and upsetting discussions. I have been retired for the last 17 years so I am unsure of the current situation, but please check if your accountant is paying the minimum NI for everyone to qualify for a basic Sate Pension.

Tilly8 that is a very good point

A few years ago, when it was made beneficial for company directors to take dividends rather than salaries I always advised my clients to pay a small salary so that they paid a small amount of NIC.

I was just responding to what the Tory govt was "promoting" at the time. I myself set up a limited company with my DH and myself to benefit from this. It was cheaper to pay dividends rather than salaries.

But the govt should be blamed for this, rather than the accountants who put it into practice. It is what we are paid to do.

Sometimes it goes against against the grain but what are we supposed to do?

For example a self employed individual, using their home as their base of employment can claim for travel costs for business purposes but an employee, forking out (sometimes) huge rail fares to commute to their place of employment cannot so so. I have always thought that this was unfair but it's allowable.

Tilly8

Just a little side note about accountants. I spent many years working as a National Insurance Inspector and State Retirement Pension administrator. In my experience accountants were experts on tax avoidance (for businesses) but the consequence of this was that the minimum amount of National Insurance to qualify for a State Pension was not paid.

This resulted in many, usually wives, not qualifying for any State Retirement Pension. This led to many distressing and upsetting discussions. I have been retired for the last 17 years so I am unsure of the current situation, but please check if your accountant is paying the minimum NI for everyone to qualify for a basic Sate Pension.

I can only say that those accountants weren't up to much.

GrannyGravy13

IHT has to be paid within six months of a persons death, HMRC charges interest after this.

IHT has to be paid before probate is granted as Plunger has posted.

How many people can afford to pay IHT, not the majority of middle earners I bet!

That's a ridiculous and punitive rule.
We have a friend who was Executor of his father's will. He doesn't live nearby, is still working, so had to take holiday to come here, stay at a hotel and was told he had to list everything in the house for probate. Because there are other siblings involved, two living overseas, they had to be contacted to see what they might want from their parents' house which then had to be listed for the solicitor. Then they had to travel from overseas to help pack up the house and dispose of things which were not wanted.
The house then had to be sold - luckily someone locally was eager to buy it because the market is quite sluggish at the moment.
It could have lingered on the market for a long time as some have.

Put it all into a Generational trust
No inheritance tax

GrannyGravy13

Every single penny I have has been taxed, I see absolutely no reason why it should be taxed again on my death.

Totally agree with you, it is all wrong. If people earn their money and pay tax and NI they should not have to pay again when they die.

Rondoallaturc

Yes, there are plenty loopholes in the IHT set up. I have already maxed out areas where funds can be protected. Since the clear intention of the new government is to promote Muslims in society and disadvantage those of us who have worked and made fiscal contributions all our lives, I now have stopped any giving to charities at all linked with abroad and have settled to enjoying the benefits I receive, such as free prescriptions, bus passes, concessions at concerts. Makes me want to make as many unnecessary bus trips as I can!!! If I get thrown in jail for this remark, my food bill will be on the government. People said in July it was time for a change…sadly they did not have the whit to realise what the implications of the change would be for Keir s “working people”. Meanwhile just watch thousands of illegals coming in each week illegally, multiplied by 5 or 6 when they want to ship in relatives, undoubtedly at taxpayer expense. For how long will they continue to claim that the previous govt left a mysterious black hole? It’s all a bit of a laugh, but not really funny!

Good post and I agree with you. The boat people are safe in France so if it is safety they want why risk a dodgy boat to cross the channel?

I dot often read a daily paper but scanned the DM yesterday.

1.8m migrants in the UK not working costing £8billion a year that’s a large quantity of wasted resources.

Other statistics tell us 25% of working age are not economically active.

Is there really any hope of recovery if this level of waste continues.?

The IFS claims that the Home Office overspent on its budget for asylum support over 3 years by 8 billion pounds.
(Guido Fawkes).
I don’t quite get this one. Was the budget right to start with? Do you just move money around from one project to another?

RVK1CR. As has been said several times, the people who earn money and have been taxed on it are not taxed again - dead people don’t pay tax. Their beneficiaries, who have not earned any of it, are taxed on anything over a million pounds, which is not the same thing at all.

Doodledog

*RVK1CR*. As has been said several times, the people who earn money and have been taxed on it are not taxed again - dead people don’t pay tax. Their beneficiaries, who have not earned any of it, are taxed on anything over a million pounds, which is not the same thing at all.

On my hard earned cash I do pay tax again and again, VAT, Fuel Tax, Insurance Tax and all the other indirect taxes on spending.
Technically the dead don’t pay tax, but HMRC take a good chunk if they can, the result is the same, your beneficiaries get less.

I'm not sure what any of this has to do with IHT, but I do know a nice Muslim lady at our craft group, so if you'll let me know more about how she is going to be promoted, Rondoallaturc, I'll pass it on.
I'm sure that she'll be interested.

David49

Doodledog

RVK1CR. As has been said several times, the people who earn money and have been taxed on it are not taxed again - dead people don’t pay tax. Their beneficiaries, who have not earned any of it, are taxed on anything over a million pounds, which is not the same thing at all.

On my hard earned cash I do pay tax again and again, VAT, Fuel Tax, Insurance Tax and all the other indirect taxes on spending.
Technically the dead don’t pay tax, but HMRC take a good chunk if they can, the result is the same, your beneficiaries get less.

Agreed. Result is the same, HMRC get their chunk.

A partial solution, for some, is charitable giving bringing ones assets under the threshold. We'd much rather our Church spend our money well - than the government waste our saved funds.

Charities have tremendous needs, more now than ever, an injection of cash would help GOSH, RSPCA, Samaritans, etc.