Jump to content
House Price Crash Forum
FreeTrader

Osborne To Raise Inheritance Tax Limit For Property To £1M

Recommended Posts

According to the FT, the main criticism against this tax change - that it would encourage older homeowners to stay in their property in order to pass on the benefit to their children - will be addressed by a provision that will allow individuals who once owned a valuable home to defer their allowance until death, even if they sold the property decades earlier.

Share this post


Link to post
Share on other sites

Another win for the 'feel sorry for a-z owner/buyer' apologists.

According to Telegraph, it should encourage a bit of downsizing, for you can carry over allowance. Might be reading it wrong (tired). If it brings a few extra homes to market, that should be a good thing, if it tilts supply balance between owners/buyers into transacting at lower prices.

http://www.telegraph.co.uk/news/politics/georgeosborne/11717394/Budget-2015-George-Osborne-to-remove-inheritance-tax-loophole.html

Share this post


Link to post
Share on other sites

"[Mr Cameron]...saying that parents’ desire to pass on wealth to their children was the “most basic, human and natural instinct there is”.

Not eating or f**king or breathing or sleeping or working or surviving or protecting, but for landowners and rentiers it's passing on wealth to your children. To be fair it does explain a lot.

Share this post


Link to post
Share on other sites

More it is worth the more money that can be made.....will encourage consolidation and upsizing at end of life.....all eggs in one expensive and overpriced tax free building.

Share this post


Link to post
Share on other sites

Not in values are falling from downsizing (with the carry-over.. see Telegraph article). Maybe the only ones to avoid IHT in the end will be Osborne's own parents (well people like them in a few years), who've downsized to some circa £7M property as I remember it. When their home is worth £1m in a few years.

7.7 million spare bedrooms empty. Almost a third of homeowners aged over 55 have considered downsizing in the past five years, yet only 7 per cent have actually made the move. There were fears that the original inheritance tax plans in the Tory manifesto would encourage elderly savers to remain in large homes to take advantage of the inheritance tax break even if they no longer needed such a big property. ..This new “family home allowance” will be worth £175,000 per person and will come on top of the existing £325,000 tax free allowance.

It's too tasty to give up, isn't it... unless they have some other motive... perhaps transactions, encouraging a more supply, and finding fewer buyers in market, leading to sellers and buyers transacting at lower prices. Nothing is what it seem? [Although I thought the same would happen to avoid IHT after massive house price reflation.. London/SE... cashing-in downsizing and spending.. didn't really happen, or was just enough buyers willing to pay silly higher prices to replace downsizers.] If these house prices and lottery cash-in winnings weren't enough to bring out more older £1m+ sellers...

IHT take at record level
03 July 2015 Comments (0)

HMRC took a record level of inheritance tax (IHT) in April, according to research from Wilsons, the private client law firm

In April, the Revenue collected £397m in IHT, well over the average £260m collected in the average month over the last 10 years.

In the three months ending May 2015, HMRC collected £1bn in IHT. This is the highest three-month total since the three months leading to the end of August 2007, when it took £1.1bn.

in full http://economia.icaew.com/news/july-2015/iht-take-at-record-level

I don't agree with some of their conclusions, other than everything is becoming more complicated; housing market with SO/SE/HTB1&2.

Share this post


Link to post
Share on other sites

Nice to see the Mail offering a free Panama. Next weekend I can go and watch them all sitting in Waitrose cafe with their free hats, reading their free copy of the Sunday Hate, drinking their free cup of tw4tish coffee, and thinking just how much better they are than everybody else around them.

Share this post


Link to post
Share on other sites

The most important aspect of this is the reasons given behind it.

With 'rising house prices' if they didn't do this just now double the number of houses would be caught by inheritance tax in 5 years.

It's pretty clear what they want to happen over the course of this next parliament.

Share this post


Link to post
Share on other sites

Nice to see the Mail offering a free Panama. Next weekend I can go and watch them all sitting in Waitrose cafe with their free hats, reading their free copy of the Sunday Hate, drinking their free cup of tw4tish coffee, and thinking just how much better they are than everybody else around them.

Will it be artisan street style coffee with a side of pulled pork ?

Share this post


Link to post
Share on other sites

Charlie Stayt is about the only bod on the BBC who actually pushes these ***** with proper questions.

I am surprised he has lasted this long.

Share this post


Link to post
Share on other sites

BBC Breakfast. Usual vacuous soundbites from the Minister. Those with homes worth £1m are 'lucky' rather than 'hard working'.

Celebrating ridiculous house prices whiles talking about 'affordable' homes (affordable only with schemes which either defer debt or involve taxpayers money).

Yet more interference and pump priming. Go economic GDP 'growth!'

Share this post


Link to post
Share on other sites

I am a die hard Tory supporter and even I think this is wrong. Appears to be a rewarding of lazy inheritance rather than work. Why? I would understand if they dropped top rates of tax - at least that is all about encouraging work or at least some level of endeavor. Rewarding inheritance while punishing workers seems a bit off message.

Share this post


Link to post
Share on other sites

I am a die hard Tory supporter and even I think this is wrong. Appears to be a rewarding of lazy inheritance rather than work. Why? I would understand if they dropped top rates of tax - at least that is all about encouraging work or at least some level of endeavor. Rewarding inheritance while punishing workers seems a bit off message.

+1

If the increased IHT threshold is to enable wealth to be handed down to the next generation, then there is no place for singling out a house as a special asset worthy of special treatment

By all means increase the threshold to £1m, but treat a £1m share portfolio in exactly the same way as a £1m house

Share this post


Link to post
Share on other sites

"[Mr Cameron]...saying that parents’ desire to pass on wealth to their children was the “most basic, human and natural instinct there is”.

Not eating or f**king or breathing or sleeping or working or surviving or protecting, but for landowners and rentiers it's passing on wealth to your children. To be fair it does explain a lot.

"....for Etonian Bullers"......

Ofc now Osborne has protected his constituents in South East he can let inflation rip. I expect to see more Adair Turner in the news over the coming months/years rabbiting on about raising the inflation target, secular stagnation & helicopter money especially so as Carney nears the exit.

My foolcast is 4%

Edited by R K

Share this post


Link to post
Share on other sites

Just saw this...he wants to people to keep the money that have earned.

Doesnt he mean, he wants to keep the money someone else has earned ?

#HousingPyramid

Share this post


Link to post
Share on other sites

this was mooted some time ago - and the same thing was said

according to reports only a few thousand legacies will be affected (64000 estates?)

I feel it is discriminatory against single people who have only half the amount tax free £500k :o

for the amount of extra votes they would garner against the frothing at the mouth by the lefties - it was not one of his better ideas.

Edited by olliegog

Share this post


Link to post
Share on other sites

This makes me sick.

No matter how hard I work or what value I contribute to the economy it doesn't matter, because I'm sure to be outbid by some random lucky enough to get a big inheritance.

No bloody point, is there.

Where's my inheritance coming from? Is someone going to volunteer me a legacy?

How will I get my £1M house, to pass on to my kids?

Where's the proper right-wing party that believes in a level playing field and in working people supporting themselves?

Share this post


Link to post
Share on other sites

estate planning

- life insurance to cover IHT

- gift wealth at least 7 years before you die

- sell productive assets and use money to buy £1m house

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   48 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.