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More money flowing into housing - Inheritance tax changes

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Telegraph: Inheritance tax gifting limit may be lifted for parents helping children buy property

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Parents and grandparents who want to help younger generations on to the property ladder could receive a tax break after the Chancellor ordered a review into inheritance tax. 

The review by the Office for Tax Simplification could lead to a radical shake-up of the inheritance tax rules and dramatically lower the age at which people tend to inherit life-changing sums. 

 

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4 minutes ago, jiltedjen said:

My parents are helping me. but have to spend the cash help over tax years to avoid inheritance tax bills. 

 

Looks like that could be all over, expect something "life changing" soon.

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9 minutes ago, TheCountOfNowhere said:

Hammond encouraging money from the top of the pyramid to support the bottom ( and his asset prices ) 

 

Full on Ponzi.

Reinvestment of surpluses is the principal rule for extending the lifetime of any ponzi scheme.

http://securitiesanalytics.com/successful_ponzi_scheme

Ponzi Scheme Longevity Rules:

  1. Encourage “reinvestment” of income. The less income the schemer pays out, the longer the scheme will last.
  2. Moderate the amount stolen each year. If he steals a smaller amount each year, the scheme will last longer and he will likely be able to steal more money overall.
  3. Discourage redemptions. Paying out principal to investors at a high rate will crash the scheme quickly. Therefore institute a large penalty for early redemptions or promise an even higher Rate of Return if the principal is reinvested instead of withdrawn.
  4. The Rate of Return promised should be higher than alternatives but not so high that paying out income will quickly bankrupt the scheme.
  5. Recruit new money. New money is key to maintaining a scheme for an extended period.

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39 minutes ago, zugzwang said:

Reinvestment of surpluses is the principal rule for extending the lifetime of any ponzi scheme.

http://securitiesanalytics.com/successful_ponzi_scheme

Ponzi Scheme Longevity Rules:

  1. Encourage “reinvestment” of income. The less income the schemer pays out, the longer the scheme will last.
  2. Moderate the amount stolen each year. If he steals a smaller amount each year, the scheme will last longer and he will likely be able to steal more money overall.
  3. Discourage redemptions. Paying out principal to investors at a high rate will crash the scheme quickly. Therefore institute a large penalty for early redemptions or promise an even higher Rate of Return if the principal is reinvested instead of withdrawn.
  4. The Rate of Return promised should be higher than alternatives but not so high that paying out income will quickly bankrupt the scheme.
  5. Recruit new money. New money is key to maintaining a scheme for an extended period.

Still rich people (old generation with housing wealth) are not that stupid, most people who have money and assets know the prices are coming down....

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I was just thinking the other day, you don't get endless articles in the MSM about BOMAD any more.  This time last year you couldn't go a day without someone's smug mug in the Daily Mail banging on about how brilliant it is.  It's suddenly gone very, very quiet so I guess Hammond has come up with a newer, sharper stick to get that intergenerational Ponzi cash flowing again.

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32 minutes ago, stop_the_craziness said:

I was just thinking the other day, you don't get endless articles in the MSM about BOMAD any more.  This time last year you couldn't go a day without someone's smug mug in the Daily Mail banging on about how brilliant it is.  It's suddenly gone very, very quiet so I guess Hammond has come up with a newer, sharper stick to get that intergenerational Ponzi cash flowing again.

It reminds me of Gordon browns desperate patronism of the public sector and benefits classes.  Eventually the people you've screwed outweigh the people you've subsidised. 

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I had an argument with an 18 year old million pound house inheritee on Facebook. His main argument against taxing his inheritance was that it wasn't his fault he was getting an inheritance so not fair to be taxed.

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6 hours ago, TheCountOfNowhere said:

Hammond encouraging money from the top of the pyramid to support the bottom ( and his asset prices ) 

 

Full on Ponzi.

For some reason when I read this news it reminded me of one of your previous threads 'they won't stop...'

 

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Pension freedom money was probably lured into BTL (2014 boom) ? Then, BOMAD money lured into FTB deposits (inheritance tax changes). After all, BOMAD is the ninth biggest lender. What next ??? Oh wait, will the masses have anything left once BOMAD is empty? Perhaps stocks?

Edit: Forgot to add savers, interest on savings disappeared first. 

Edited by Fairyland

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15 hours ago, Si1 said:

I had an argument with an 18 year old million pound house inheritee on Facebook. His main argument against taxing his inheritance was that it wasn't his fault he was getting an inheritance so not fair to be taxed.

Inheritance tax is one of the most disgusting taxes going. Anyone who supports it should frankly be shot.

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1 hour ago, Locke said:

Inheritance tax is one of the most disgusting taxes going. Anyone who supports it should frankly be shot.

Why is taxing unearned income  more disgusting than taxing earned income?

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20 hours ago, TheCountOfNowhere said:

Hammond encouraging money from the top of the pyramid to support the bottom ( and his asset prices ) 

 

Full on Ponzi.

Snake eating its tail.

E3EF8DF3-26E1-4DDA-BBCB-7792DAE445F2.jpeg

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1 hour ago, PropertyMania said:

Why is taxing unearned income  more disgusting than taxing earned income?

It's already been taxed upon earning it. The kind of person who can stomach ripping away things which a parent saved to pass on to their children is subhuman.

If house prices rise, that is not the fault of people who bought them. 

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2 hours ago, PropertyMania said:

Why is taxing unearned income  more disgusting than taxing earned income?

+1 if anything earned income should be tax free, unearned income should be taxed.

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And never mind everyone else's kids, eh.  Should have been born to richer parents.

What people effectively inherit is inequality.  In a meritocracy it should be your own efforts, not your parents', that determine your lot in life.  At the moment it is very much the opposite, since just about the only way to obtain a decent family home in much of the country is to inherit one.

Inheritance tax is one of the only defences against a return to the times of Downton Abbey or Henry VIII.  Why do you think most (though by no means all) of the old landed gentry aren't still lording it over us?  It's because - after the war - we taxed their estates.

Inheritance tax is one of the fairest taxes there is.  It should be 100%.

Edited by irrationalactor

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18 minutes ago, Locke said:

It's already been taxed upon earning it. The kind of person who can stomach ripping away things which a parent saved to pass on to their children is subhuman.

If house prices rise, that is not the fault of people who bought them. 

If you're passing on the inheritance of a house that's gone up in value then you're effectively giving them the already taxed income of the person(s) buying the house. Therefore I agree with @HowMuch! , much fairer to tax income less and unearned wealth more.

So sorry, you're going to have to save a bullet for this subhuman. 

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I don't see any need for any specific rules on inheritance tax. It's just income/Capital gains and should be taxed as such.

The whole already taxed argument is bullsh*t. When you spend your wages in a shop and then they pay wages to an employee, the money has obviously been taxed multiple times. Not to mention VAT. Rinse and repeat.

Q

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1 hour ago, Locke said:

It's already been taxed upon earning it. The kind of person who can stomach ripping away things which a parent saved to pass on to their children is subhuman.

If house prices rise, that is not the fault of people who bought them. 

It's not my fault I have to go to work. You can save a bullet for me too. It's alright I've already got one for you.

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I would happily scrap inheritance tax on property so long as the annual 1-2% charge on the unimproved value of the land on which it sits is up to date and paid in full.

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28 minutes ago, Si1 said:

It's not my fault I have to go to work. You can save a bullet for me too. It's alright I've already got one for you.

"If I'm going to be miserable, then everyone else must be too."

Work and taxation are not the same. Having to expend effort to get food is a fact of life for all living organisms.

Taxation is theft.

Falling for the "taxing unearned income" meme is falling right into the elite's trap. 

Still, if you support taxation, you are the one showing up to my door to rob me, which makes you the arsehole.

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  • 407 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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