Monday, October 9, 2006

Potential financial penalty awaits homeowners

Average house prices set to break IHT barrier

Average property prices are set to surge past the inheritance tax threshold in less than a decade, research showed on Monday. If the growth in property prices and the inheritance tax (IHT) nil rate band continues at current levels, the average UK homeowner will be liable for the tax in eight years' time, Stroud & Swindon Building Society said. Paul Chafer, sales director at Stroud & Swindon, said many "ordinary" consumers still assumed they had insufficient assets to be liable for IHT -- originally intended to hit the super-rich. But he said the expected upturn in the number of estates being liable for the tax -- charged at 40 percent on assets over the threshold -- would see the amount of money flooding into the government's coffers surge by a "huge amount".

Posted by little professor @ 03:08 PM (572 views)
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9 thoughts on “Potential financial penalty awaits homeowners

  • False wealth being used to fund government waste. Just imagine having to re-mortgage your parents house to pay inheritance tax only to find yourself stuck in negative equity in the post Olympic UK economic meltdown.

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  • Actually, IHT is one of the better taxes, and certainly one which makes a lot of sense.. I just think it should be better enforced and changed in a few ways. Namely, if the person dies before retirement no HT should be paid on it. Also a premium should be paid if it wasn’t the deceased’s primary residence. (i.e. BTL or holiday home). Also people could get tax breaks if they live there and perhaps look after their parents in old age (reducing the tax burden) etc…

    Also I think there are many loopholes for the very wealthy to get around it.

    if you think about it, not taxing is much worse why should anyone do anything to better themselves (good job, run a business) when all they have to do is wait until dad leaves them the house and they can sell it and spend the money on lcd tvs and pointless holidays, oh and lets not forget online poker et ‘al.

    Finally; this is big in the US at the moment too, the reality is that there only 1% face having to pay IHT but because everyone has been sold the American dream, they think it will affect them in the future. How clever is that? The US rich have managed to make it justifiable to pass a law which keeps the rich rich and the poor poor.

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  • Cstanhope707 says:

    Expect to see a DE propaganda article on this in the next few days for their inheritance tax campaign.

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  • japanese uncle says:

    Stupid pen pushers under C-Gordon are on a spending spree with unlimited revenue financed by crazy house price. But wait a minute, when HPC happens, can they readily readjust all of their established spending infrastructure. I think not.

    The same is true with council finance, as fueled by house price hike.

    Introduction of council tax was a crime/mistake of the century. In Japan regional income tax has been in place for more than half century and its working without a problem. Looking back from now, this grotesquely unfair scheme for regional government financing pushed by the Milk-Snatcher was the historical turning point for this country, of course to the worse and the worst, as culminated by Bliar (Every time I look at his photo in his Fettes days, his silly superficial smile revealing all his deceptive conman-like quality at the age of 17, overwhelms me with disgust and disdain! )

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  • Japanese Uncle… I fully agree this whole “economic mircale” has been built on the back of the housing market. This has fed the government coffers allowing Crash Gordan to waste on government spending.

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  • I also agree with the image of TB – it overwhelms me with disgust too. He’s really creepy – just like most politicians – but many times more so.

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  • Sam

    I don’t think IHT makes any sense at all. It is just robbery to fund government nonsense.

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  • waitingfor hpc says:

    IHT is wrong – if you earn it and give it to your family – why not – after all anything they spend is TAXED at 17.5%???
    You should pay a tax on death but it should be capped – every person should pay say 20% of wealth to the state BUT only to be used for specific projects for the better of all like schools & NHS.
    If this tax was less penile then more of the rich would pay it and 20% of a lot is better than 40% of nothing!!

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  • Retiredbanker says:

    waitingfor hpc-

    This “penile” tax that you refer to has me worried!

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