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'pay Before You Die' Inheritance Tax Plan

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People suspected of trying to avoid inheritance tax could have to pay before they die under proposals being considered by ministers.

HM Revenue & Customs could demand "accelerated payment" where savers are using potentially illegal avoidance schemes.

The measures - at the consultation stage - are a response to concern that growing numbers of people are using trusts to shield their estates from inheritance tax.

But Stuart Phillips, of tax planning firm the Private Office, said the policy could have "unintended consequences". [More at link]

http://news.sky.com/story/1316515/pay-before-you-die-inheritance-tax-plan

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I fully expect the price of farm land/forestry to sky rocket further as this remains a sure fire way to avoid IHT.

I am already contemplating buying property in france, surely i could just take out french citizen ship as well (they have removed the requirement for fluency in french) and i could dodge IHT completely?

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If workers are paying income tax on anything above £10kish, then I can't understand why inheritance tax isn't levied at the same levels and rates. Why should people who are productive and who work for their income be taxed more heavily than someone receiving unearned free wealth for doing nothing.

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If workers are paying income tax on anything above £10kish, then I can't understand why inheritance tax isn't levied at the same levels and rates. Why should people who are productive and who work for their income be taxed more heavily than someone receiving unearned free wealth for doing nothing.

It's difficult to force change when the Normans still rule the country.

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If workers are paying income tax on anything above £10kish, then I can't understand why inheritance tax isn't levied at the same levels and rates. Why should people who are productive and who work for their income be taxed more heavily than someone receiving unearned free wealth for doing nothing.

NOOOOOOOOOOOOOOOOOO!!!!!!!!

Although this is about IHT that's a dodgy stance for anyone with some savings.

If/when interest rates rise I expect there will be more calls for a tax on unearned income but I thought it would come from squealing debtors!

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Didn't Gordon Brown cancel the election because GO was going to get rid of IHT. They are just making it up as they go along you can't trust any of them.

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It is getting difficult these days not to feel like you are being farmed at every step.

I would like to live somewhere that the state enforces the rule of law, prevents monopolies in essential resources, and lets the average man live his life with as little interference as possible. Does this place exist?

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I would get rid of inheritance tax (and capital gains tax too as it happens) in its entirety - only the little people pay it and it basically stops social mobility.

I used to be strongly in favour of IHT and think there is no better time to pay tax than when you are dead.

However, the ability of the better off to avoid it in all sorts of ways is legion.

So, I recommend moving to annual taxes on land/wealth instead.

Hadn't given it much though but I think you are right. This would mean you could have as much land as you wanted only you would have to rent it as such. Inheriting a big house with lots of land could then become a burden because of the on go tax.

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I fully expect the price of farm land/forestry to sky rocket further as this remains a sure fire way to avoid IHT.

I am already contemplating buying property in france, surely i could just take out french citizen ship as well (they have removed the requirement for fluency in french) and i could dodge IHT completely?

erm but then you'd have to pay IHT in France, plus maybe wealth tax.

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I would get rid of inheritance tax (and capital gains tax too as it happens) in its entirety - only the little people pay it and it basically stops social mobility.

How on earth can inheritance tax 'stop social mobility'?

It's inheritances themselves that ensure that there is no social mobility. The children of the rich get inheritances which ensure that they will be the rich of the new generation. The children of the poor stay poor, with no hope of earning enough to compete with the wealth inherited by their competitors. That's the exact opposite of a society which allows social mobility.

The inheritance tax threshold is £325,000. Which 'little person' would die with this amount, were it not for the housing bubble?

Inheritance tax should be 100%.

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How on earth can inheritance tax 'stop social mobility'?

It's inheritances themselves that ensure that there is no social mobility. The children of the rich get inheritances which ensure that they will be the rich of the new generation. The children of the poor stay poor, with no hope of earning enough to compete with the wealth inherited by their competitors. That's the exact opposite of a society which allows social mobility.

The inheritance tax threshold is £325,000. Which 'little person' would die with this amount, were it not for the housing bubble?

Inheritance tax should be 100%.

What a thread this is turning out to be.

The dreaded words tax on unearned income and a 100% IHT that would only apply to little people (It's coming using care fees as an excuse)

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erm but then you'd have to pay IHT in France, plus maybe wealth tax.

indeed, i've looked it up. But at least their system is more sensible in one way, it is the recipient who is taxed so that if you have a large number of beneficiaries they pay little.

The problem with IHT as it is applied, as has been noted above, is that it is simply avoided by the very wealthy.

The problem with the "it should be 100%" concept is you fall into the same trap as all very high taxation schemes, all that happens is that it hands the country over to crooks (and the aristocracy) who avoid tax. In a situation where houses are bought in open competition, the people who manage to avoid the tax have a slight advantage with low taxation and a colossal advantage with high taxation.

if the govt introduced 100% IHT honest people would have no money to compete with crooks and aristrocrats who would buy up the lot- is that what you want?

Edited by debtlessmanc

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What a thread this is turning out to be.

The dreaded words tax on unearned income and a 100% IHT that would only apply to little people (It's coming using care fees as an excuse)

My post was about social mobility. Inherited wealth ends up with a fedual society - the Queen and the Duke of Westminster didn't go out and earn their fortunes, did they? The chance of someone rivalling positions built up over centuries through their own efforts is zero.

Trusting the government with more money is another thing entirely. This 'pre-death' tax proposal is stupid. What's the difference between an avoided legacy and money you just haven't got round to spending yet? And as for care fees, the way it's going we'll all be taking a trip to Dignitas in order to avoid leaving ourselves at the mercy of sadistic care assistants.

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