Inheritance tax in UK
Mar 21st 2007, 4:02 am
#1
Concierge
Thread Starter
Joined: Feb 2007
Posts: 29,625
Inheritance tax in UK
Saw this on the net this morning - where do we stand legally if either ourself or our partner dies. I had a friend who lost her husband here, will tell that story later.
Homeowners
Inheritance tax (IHT) is set to affect more families as house prices continue to rise.
The tax is paid at 40% on the value of your estate when you die above the current threshold of £285,000 – and remember your estate includes your home. Stephen Herring of BDO Stoy Hayward advises the chancellor to increase the exemption threshold to £500,000. He says: “The tax would then hit its target, and miss the moderately affluent homeowners.”
Brown could even scrap IHT and instead apply capital gains tax to your estate when you die. But he is unlikely to be in a radical mood at such as crucial moment in his political career.
On the subject of capital gains, the chancellor could do worse than simplify the tax. There are two rates of CGT, plus taper relief, which makes it overly complicated.
Find out more about inheritance tax with Direct.gov
Homeowners
Inheritance tax (IHT) is set to affect more families as house prices continue to rise.
The tax is paid at 40% on the value of your estate when you die above the current threshold of £285,000 – and remember your estate includes your home. Stephen Herring of BDO Stoy Hayward advises the chancellor to increase the exemption threshold to £500,000. He says: “The tax would then hit its target, and miss the moderately affluent homeowners.”
Brown could even scrap IHT and instead apply capital gains tax to your estate when you die. But he is unlikely to be in a radical mood at such as crucial moment in his political career.
On the subject of capital gains, the chancellor could do worse than simplify the tax. There are two rates of CGT, plus taper relief, which makes it overly complicated.
Find out more about inheritance tax with Direct.gov
Mar 21st 2007, 4:47 am
#2
Big Member
Joined: Jul 2005
Posts: 3,889
Re: Inheritance tax in UK
Ah, the budget. A nice reminder as to why we chose not to live in the UK anymore.
Mar 21st 2007, 8:02 am
#3
BE Enthusiast
Joined: Jan 2005
Location: Dubai
Posts: 888
Re: Inheritance tax in UK
Yes, I'll be having a laugh at that later.
Mar 21st 2007, 8:05 am
#4
BE Enthusiast
Joined: Jan 2005
Location: Dubai
Posts: 888
Re: Inheritance tax in UK
Saw this on the net this morning - where do we stand legally if either ourself or our partner dies. I had a friend who lost her husband here, will tell that story later.
Homeowners
Inheritance tax (IHT) is set to affect more families as house prices continue to rise.
The tax is paid at 40% on the value of your estate when you die above the current threshold of £285,000 – and remember your estate includes your home. Stephen Herring of BDO Stoy Hayward advises the chancellor to increase the exemption threshold to £500,000. He says: “The tax would then hit its target, and miss the moderately affluent homeowners.”
Brown could even scrap IHT and instead apply capital gains tax to your estate when you die. But he is unlikely to be in a radical mood at such as crucial moment in his political career.
On the subject of capital gains, the chancellor could do worse than simplify the tax. There are two rates of CGT, plus taper relief, which makes it overly complicated.
Find out more about inheritance tax with Direct.gov
Homeowners
Inheritance tax (IHT) is set to affect more families as house prices continue to rise.
The tax is paid at 40% on the value of your estate when you die above the current threshold of £285,000 – and remember your estate includes your home. Stephen Herring of BDO Stoy Hayward advises the chancellor to increase the exemption threshold to £500,000. He says: “The tax would then hit its target, and miss the moderately affluent homeowners.”
Brown could even scrap IHT and instead apply capital gains tax to your estate when you die. But he is unlikely to be in a radical mood at such as crucial moment in his political career.
On the subject of capital gains, the chancellor could do worse than simplify the tax. There are two rates of CGT, plus taper relief, which makes it overly complicated.
Find out more about inheritance tax with Direct.gov
) but I don't think there is any inheritance tax between spouses? I don't think it is legal to marry your children either though...
Mar 27th 2007, 4:39 pm
#6
MODERATOR
Joined: Dec 2004
Location: Dubai
Posts: 6,372
Re: Inheritance tax in UK
Saw this on the net this morning - where do we stand legally if either ourself or our partner dies. I had a friend who lost her husband here, will tell that story later.
Homeowners
Inheritance tax (IHT) is set to affect more families as house prices continue to rise.
The tax is paid at 40% on the value of your estate when you die above the current threshold of £285,000 – and remember your estate includes your home. Stephen Herring of BDO Stoy Hayward advises the chancellor to increase the exemption threshold to £500,000. He says: “The tax would then hit its target, and miss the moderately affluent homeowners.”
Brown could even scrap IHT and instead apply capital gains tax to your estate when you die. But he is unlikely to be in a radical mood at such as crucial moment in his political career.
On the subject of capital gains, the chancellor could do worse than simplify the tax. There are two rates of CGT, plus taper relief, which makes it overly complicated.
Find out more about inheritance tax with Direct.gov
Homeowners
Inheritance tax (IHT) is set to affect more families as house prices continue to rise.
The tax is paid at 40% on the value of your estate when you die above the current threshold of £285,000 – and remember your estate includes your home. Stephen Herring of BDO Stoy Hayward advises the chancellor to increase the exemption threshold to £500,000. He says: “The tax would then hit its target, and miss the moderately affluent homeowners.”
Brown could even scrap IHT and instead apply capital gains tax to your estate when you die. But he is unlikely to be in a radical mood at such as crucial moment in his political career.
On the subject of capital gains, the chancellor could do worse than simplify the tax. There are two rates of CGT, plus taper relief, which makes it overly complicated.
Find out more about inheritance tax with Direct.gov
There's an easy way out of having to sell or re-mortage a home just to pay IHT...get a life insurance policy to the value of the tax bill (or more if you) and when you or your partner dies the taxman gets his cut and your family is no worse off (maybe better off) as life insurance is not taxable on payout and doesn't count as part of your estate.
I think IHT is disgusting but that's more to do with the fact our government thinks spending our hard earned cash on Mega Mosques in the middle London is more important than extra police, improving infastructure or maybe looking after the elderly and vetrans!
Mar 27th 2007, 4:46 pm
#7
Concierge
Thread Starter
Joined: Feb 2007
Posts: 29,625
Re: Inheritance tax in UK
I've done a fair amount of this sort of estate planning with my clients.
There's an easy way out of having to sell or re-mortage a home just to pay IHT...get a life insurance policy to the value of the tax bill (or more if you) and when you or your partner dies the taxman gets his cut and your family is no worse off (maybe better off) as life insurance is not taxable on payout and doesn't count as part of your estate.
I think IHT is disgusting but that's more to do with the fact our government thinks spending our hard earned cash on Mega Mosques in the middle London is more important than extra police, improving infastructure or maybe looking after the elderly and vetrans!
There's an easy way out of having to sell or re-mortage a home just to pay IHT...get a life insurance policy to the value of the tax bill (or more if you) and when you or your partner dies the taxman gets his cut and your family is no worse off (maybe better off) as life insurance is not taxable on payout and doesn't count as part of your estate.
I think IHT is disgusting but that's more to do with the fact our government thinks spending our hard earned cash on Mega Mosques in the middle London is more important than extra police, improving infastructure or maybe looking after the elderly and vetrans!
Mar 27th 2007, 5:51 pm
#8
Trust Your Instincts.....
Joined: Oct 2004
Location: Dubai
Posts: 1,404
Re: Inheritance tax in UK
I must say that inheritance tax is something that makes my bloody boil... it doesnt matter how bloody rich you are why should the goverment get a slice of it when you die..... you have probably paid tax all your life and the richer you are the more you pay..... its disgusting and should be abolished:curse:
Mar 27th 2007, 5:58 pm
#9
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,181
Re: Inheritance tax in UK
I must say that inheritance tax is something that makes my bloody boil... it doesnt matter how bloody rich you are why should the goverment get a slice of it when you die..... you have probably paid tax all your life and the richer you are the more you pay..... its disgusting and should be abolished:curse:
Mar 27th 2007, 6:20 pm
#12
Trust Your Instincts.....
Joined: Oct 2004
Location: Dubai
Posts: 1,404
Re: Inheritance tax in UK
I dont care I still think its outrageous to have to pay once your dead when you have already paid tax on it already
Mar 28th 2007, 6:45 am
#15
MODERATOR
Joined: Dec 2004
Location: Dubai
Posts: 6,372
Re: Inheritance tax in UK
Most people don't realise and don't seek professional advice so they end up victim to the cold calling salesman or paying HM Government more money to spend of things we don't need or want!