Conspiracy Theory OAP

And you also have to consider the laws in this country and the way houses are sold.
Its so complicated that the bloke in the street cant understand it and solicitors etc. just rip everyone off.
Its jobs for the boys.

 

You've got to own a house [well, leave an "estate"] worth more than £650,000 before you have any inheritance tax (assuming you have two allowances) ... so most people won't be in that bracket (only 2.6% of people who die pay inheritance tax and it raises £2.25 billion p.a.).

I'm not a fan of that tax, and the Tories aren't either - except that they have to be a fan of pretty much any tax going at present to try to get the borrowing down ...

There is strong academic evidence that inherited wealth goes mostly towards people starting their own businesses and gifts / bequests facilitate people to become self employed, which is good for the economy. Heck, even if you spend the millions you inherit that stimulates the economy - IMHO far more efficiently that the government collecting the money, as taxes, centrally, and then distributing it - their inefficiency erodes much of the value of that wealth.

 

I don't see it as an inherited wealth, it is,ours, my family's, that's who it was bought for and surely free to do with as we please (Human Rights perhaps?). It's value is as a family home, it was not purchased for profit, even if it is worth more now, that has no consequence. It is somewhere my son can always call home, as he has no chance what-so-ever of getting on the housing ladder. Unless he gets that lucky ticket of course.

I agree with the academic stuff, if my son does not have the burden of a mortgage, he is more free to choose his vocation, and could probably do something he liked other than doing something 'just' to pay the bills, therefore being more productive, earning more, paying more in taxes, surely a win win......

 

Nah, its yours - not your son's ... if it becomes his he has inherited it, rather than earned it, so that is taxable - as the tax system currently stands, but its always been unpopular / dubious, and in bonny times the Conservatives have minimised Inheritance Tax, whereas Labour increase it - not because it raises much money, but because it is seen to be "right" to their voters. Same with taxing the rich more - all that does is make the rich pay accountants more to avoid the tax, the government doesn't make much, if any, additional tax in raising 40% to 50% - but it is seen as "right". Despite the fact that plenty of rich people then emigrate, and take their businesses with them ... I remember the days of Super Tax Ha-bloody-ha! when the likes of the Beetles were paying 96% tax ... those were the days of what was called "the brain drain" at the time, because anyone with half a brain emigrated ...

If you have more than £650K of assets then best to speak to a specialist accountant about minimising inheritance tax ...

 

Well FC , Armandi and Shiney have more or less answered for me

I was serving at sea in the RN and got engaged, we then both saved hard, to have the deposit on a house, before we married and lived together
We got married, and lived married accompanied in Gibraltar and Hong Kong, on our return to UK we found a house paid the deposit and commenced the mortgage
There were no subsidies, just hard work for both of us, she working at home me away at sea
Until the children came along then it was just me paying the bills

Bear in mind that although houses were cheaper, the wages were lower too, infact more or less pro rata to today
Also when you own your own house, The council or landlord does not pop round every five years and fit you a new kitchen,bathroom, rewire, heating or house insulation / maintenance
You have to find the cash for that yourself
There is no big pot of money at the end, as you need to live there, if you go into a home from ill health then the house goes to pay for that

You can not give it to your kids without causing them grief (give them it now on condition we live in it until dead or care home needed)
If as mine do they have their own mortgage, then having a second home, is a problem as it interferes with their standing on the mortgage and taxes

The ideal sixty years ago, was work, save, pay your way, Then retire at 65 with a standard pension, and a few savings, that with a little interest would balance the inflation rises

The savings are not great, just enough for a holiday each year and some treat or other, pay maintenance on the home (estimate ten years life)
The banks and Government have taken all that from me / people like me now
They have stolen it, to balance the books for themselves, and provide for people that have not made provision for themselves

Getting the violin out, When we moved into our home, we had nowt zilch nothing,
The stairs we carpeted with yard square carpet samples (all identical like) all the other floors were Lino and just the one coal fire
No TV just a radio, old fashioned furniture/ cooker came from the sale rooms, as and when we could afford itm No fridge, No telephone, that did not come for ten years and then it was a shared line

People would not be prepared to do that now, to own their own home, they also want everything in it, including blackberry's cinema systems, central heating car/cars

Not arguing just stating it how it was, and now at the end of my life SHAFTED by the Banks and GOVERMENT

Jack McH

 

Presumably you got Miras relief though Jack? (for house purchases up until '88 and mortgage payments until 2000)

 

"Not arguing just stating it how it was, and now at the end of my life SHAFTED by the Banks and GOVERMENT".
So so true Jack.
But when I look around the world and see people living in tents, in squalor ,no medicine, no food, no water, no future.
Kind of put things in perspective..............................

 

Not quite, but our house was furnished entirely with 2nd hand furniture, some SH carpets, etc,. but that included loads of antique stuff (which hasn't lost its value).

Weren't the only people who really benefited from that were unmarried joint purchasers?

And I'm sure it finished a lot earlier than you suggest as the ending of 'double MIRAS' was the only reason I married Mrs Scrungee. But perhaps I'm thinking of before the end of transitional relief?

 

MIRAS Must have been available but as my weekly wage was £11.90p BEFORE TAX I do not think it would have been much though the previous year the weekly wage was £9.10p

http://www.godfreydykes.info/first april 1966.pdf

Jack McH