AND HERE WE GO - THE 2019 GENERAL ELECTION THREAD

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PhilTheFragger said:
For a minute, try and forget the fixation with the duke of Westminster.

He is an anomaly, I’m more concerned with the average person in the street, who has worked hard, saved, bought a house, raised a family and wants to pass that onto the kids.
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Look at the HMRC figures, the average person in the street doesn’t meet the threshold, like I said, it’s the minority in the middle, which would includes me, that is affected unfairly.

The Duke of Westminster isn’t a fixation, it’s the crux of the problem, the rich get richer, don’t pay their fair share and people like you and me are shafted.
 
pauldj42 said:
I don’t agree with it Phil as I said above, but once again it’s a Policy that makes no difference to those at the top or bottom and catches the few in the middle.
If, the Duke of Westminster had paid Inheritance tax it would of nearly equalled the amount collected by the Government in that year, the whole system needs a review.
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I think I may be getting crossed wires here but in my understanding this new policy would affect the majority of the home owning population.
Average UK house price is around £230,000, you show me somewhere you can buy a fairly decent family home in a reasonable area for under £125,000, they don't exist. They giveth with one hand and taketh with the other.
 
PhilTheFragger said:
depends where you live Paul

Down south the average 3 bed semi/ terrace costs £280-£300 k minimum that’s in Aylesbury, go closer to London by 10 miles to Chesham and it’s £350k

There is going to be a shedload of middle England not happy with this proposal
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Fragger, you've seen mine, bog standard 3 bedroom end of terrace in the SW London commuter belt. The one next door went for over 500k. Ridiculously overpriced for what you actually get but it's the market rate round here so that's what you'll pay the tax on.

So, depending on what happens in relation to spouses, could Mrs. BiM end up having to pay a sizeable chunk to stay in our family home should I go first? Concerning...
 
Beezerk said:
I think I may be getting crossed wires here but in my understanding this new policy would affect the majority of the home owning population.
Average UK house price is around £230,000, you show me somewhere you can buy a fairly decent family home in a reasonable area for under £125,000, they don't exist. They giveth with one hand and taketh with the other.
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I’m not clever enough to cover every scenario and every way it may or may not affect people.
Below is the last Inheritance tax stats produced by HMRC, the next one is due in 2020. On this you will see the figures going back years, on current rules only 4.6% of deaths were covered by IHT.

https://assets.publishing.service.g...ttachment_data/file/832126/IHT_Commentary.pdf

There is also this analysis done by the BBC and it shows wealth etc

https://www.bbc.co.uk/news/amp/uk-48759591

Like I’ve stated, I’m against the proposals and the above are actual facts.
We may feel “asset wealthy” but in the big scheme of things, we may not be.
 
Blue in Munich said:
Fragger, you've seen mine, bog standard 3 bedroom end of terrace in the SW London commuter belt. The one next door went for over 500k. Ridiculously overpriced for what you actually get but it's the market rate round here so that's what you'll pay the tax on.

So, depending on what happens in relation to spouses, could Mrs. BiM end up having to pay a sizeable chunk to stay in our family home should I go first? Concerning...
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Not 100% sure, but I believe it depends on marital status and names on the documents. The issue is more if you went first then Mrs BiM needed to go in to care, she could be forced to sell her assets to cover the costs. (I think)
 
pauldj42 said:
Not 100% sure, but I believe it depends on marital status and names on the documents.
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At the moment; what else might change with the threshold?


pauldj42 said:
The issue is more if you went first then Mrs BiM needed to go in to care, she could be forced to sell her assets to cover the costs. (I think)
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Whereas if you spend your life making no provision for yourself but pee it all up the wall and then need care, the state provides it. Which in my opinion is wrong and should be addressed.
 
Blue in Munich said:
At the moment; what else might change with the threshold?




Whereas if you spend your life making no provision for yourself but pee it all up the wall and then need care, the state provides it. Which in my opinion is wrong and should be addressed.
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Totally agree, although we must be careful we don’t treat all those with nothing as wasters. (Not you)

Not sure of all ins and out, had sone dealings last year as an executor of a will and even at current levels the tax man gets a few bites of the cherry.

The best/worst part, if you’re wealthy enough, is to use an accountant and make sure the Government gets nothing as in The Duke of Westminster,;)
 
Information about what labor will do regards paying tax taken from papers who are owned by extremely wealthy non-dom individuals who pay little tax in the UK is the most sensible way to decide who to vote for. #fullfact
 
pauldj42 said:
They are suggesting reversing the changes brought in by George Osborne, it will revert to were we were in 2010-14, surprisingly enough (using a couple as the example) very few people in the Country have £250,000.00 in assests.[/QUOTE]

That is not so. Let's examine this.
Who are the ones most likely not to die, - the young
And who will die soon.- the elderly.
Generally, what have the latter got that the former haven't ? A house which they own.
A lifetime of sensible living and favourable conditions means they have assets in bricks and mortar of at least £200,000- most have more.
So that's a lot of what were working people going to be shafted (or rather the children , who have not near so much ) .
Try using google earth to go over most towns and look at the homes. Most are owned and every one of those will be shafted at some point by Corbyn .
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I think you get taxed on the amount over the threshold value.
If your being wise you will downsize and seek to invest the money in some form of savings /annuity, you can also set isa’s for grandchildren or children and make lump sum contributions up to a certain value.
In essence there are loads of methods of getting your hard earned to those you would like to benefit and reduce your pay out to the tax man.
Don’t accuse me of cheating the tax man, these loops have been left to be exploited.
I think your getting yourselves a little hot under the collar over nothing that cannot be resolved with a little strategic thinking.
 
harpo_72 said:
Equity release will be used to avoid paying out.
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An absurd suggestion, equity release to reduce your assets to below the tax threshold will only work if you have nobody to pass your estate to.

It’s a lifetime gift allowance, so if you have a house like BIM worth £500k and you take equity release and give your 2 kids £125k between them. when you peg it, what’s left after the equity release vultures have had their bite will still be taxed as the kids have already had their share.

The only difference is if the threshold rises over time, so if it’s 130 when you go they could claim an extra 5k tax free between them
 
PhilTheFragger said:
An absurd suggestion, equity release to reduce your assets to below the tax threshold will only work if you have nobody to pass your estate to.

It’s a lifetime gift allowance, so if you have a house like BIM worth £500k and you take equity release and give your 2 kids £125k between them. when you peg it, what’s left after the equity release vultures have had their bite will still be taxed as the kids have already had their share.

The only difference is if the threshold rises over time, so if it’s 130 when you go they could claim an extra 5k tax free between them
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Equity release is just a method, that has been latched onto by the unscrupulous firms ..
BIM has a choice sell up and fund a good retirement and care home. Or sit on an asset and when the time comes give away a lot of tax .. seriously needs to discuss options with an accountant and IFA
 
Angela Raynor made a great job of dodging Andrew Mar's question on how Labour's statement where only the top 5% of earners will pay more income tax when millions of people on the basic rate will if Labour removes the Married tax allowance. Should we all start shouting out 'Liars'
 
PhilTheFragger said:
An absurd suggestion, equity release to reduce your assets to below the tax threshold will only work if you have nobody to pass your estate to.

It’s a lifetime gift allowance, so if you have a house like BIM worth £500k and you take equity release and give your 2 kids £125k between them. when you peg it, what’s left after the equity release vultures have had their bite will still be taxed as the kids have already had their share.

The only difference is if the threshold rises over time, so if it’s 130 when you go they could claim an extra 5k tax free between them
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You are only allowed to gift a maximum of £3000 per year tax free.
 
Exempted gifts
You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.
You can carry any unused annual exemption forward to the next year - but only for one year.
Each tax year, you can also give away:
  • wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great-grandchild, £5,000 for a child)
  • normal gifts out of your income, for example Christmas or birthday presents - you must be able to maintain your standard of living after making the gift
  • payments to help with another person’s living costs, such as an elderly relative or a child under 18
  • gifts to charities and political parties
 
harpo_72 said:
Equity release is just a method, that has been latched onto by the unscrupulous firms ..
BIM has a choice sell up and fund a good retirement and care home. Or sit on an asset and when the time comes give away a lot of tax .. seriously needs to discuss options with an accountant and IFA
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BiM as a taxpayer should have the same access to end of life care as those who have chosen not to make any such provision. Why should BiM be forced to move away from his home, his friends and his hobbies in order to avoid being mugged in old age by the taxman? The system is utterly wrong in this respect. And please don't suggest BiM downsizes to stay in the same area as the only beneficiaries from that will be the lawyers and estate agents, given the property prices round here.

And the IFA (who says don't touch equity release with a barge pole) is paying his annual visit tomorrow.
 
PhilTheFragger said:
Not if you survive for 7 years, the tax liability drops year on year on a sliding scale
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Isn’t this only for say a house, ie, I sign my house to my son, if I live over 7 years and then peg it, the house is his, if under the 7 he’d be liable to tax on a sliding scale?
 
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