Inheritance Tax

Gayle · 09-03-2006, 20:28

Anyone been affected by this? Are there any ways around it?

Not that it's likely to affect me for some time (touch wood) but there's a big campaign going on in the Daily Express at the moment so just wanted to hear views.

andrewb · 09-03-2006, 20:34

I would have thought the only way around it would be to hand everything over before you pass away.. that way it's more giving than inheriting?

Ah long live labours cashing in.. ps. I know inheritance tax has been around for god knows how long, but it was labour who recently placed a 40% tax on value over 275k

entwisi · 09-03-2006, 20:51

Yes barrett, under the tories it was 40% on anything over £245K

As it is and in answer to Gayle,

There are ways to protect you depending on your personal circumstances. A GOOD solicitor/financial advisor can help you.

Basically some things I remember but may need to make sure they are still valid are things like, if both parents are living, they can create a tenants in common agreement where they each leave half their property to dependants(although there is protection so the surviving spouse can't be kicked out). As long as one outlives the other by 7 years they are traeted as seperate bequests and therefore would be subject to sperate 275K limits.

There are others but as I said, this is a VERY specialised area and you really need professional advice from someone who focuses in this area.

It all depends on just how much teh value of the estate that is going to be left is as to how far you persue this

garinda · 10-03-2006, 12:11

There are legal ways around it, as Princess Margaret tried to do.

Sadly though when the seven years were up, she had to watch as her son, Viscount Linley, sold the one and only home that she ever owned on Mustique, breaking her heart.

There are always pitfalls.

Neil · 10-03-2006, 13:01

I think there is a maximum you can give/receive each year without incurring tax as well.

garinda · 10-03-2006, 13:04

Quote:

Originally Posted by Neil

I think there is a maximum you can give/receive each year without incurring tax as well.

I think you can 'gift' up to 7k per annum, but do seek legal advice before doing it.

Rindy said so, might not stand up in court.

Neil · 10-03-2006, 14:27

That sounds about right mate

fireman · 11-03-2006, 22:22

setting up trust funds takes money out of the inheritance tax band.

katex · 12-03-2006, 12:45

Don't think will have that much money to leave when I pop it, that will be subject to Inheritance Tax !! Wonder if Martin Lewis's best selling book covers this >> heard him discussing with Jeremy Vine one lunch and was giving tips then. Has a web site .. can look there, 'fraid I glazed over as will never affect me.

harwood red · 12-03-2006, 13:56

Oooo to even have to worry if inheritance tax would ever be an issue in my life!!!!

katex · 12-03-2006, 14:02

Quote:

Originally Posted by harwood red

Oooo to even have to worry if inheritance tax would ever be an issue in my life!!!!

I know, she's such a snob that Gayle ! LOL

garinda · 12-03-2006, 14:06

Inheritance tax used to be only for the landed gentry. With the inflation in house prices many hundreds of times what it was thirty years ago, the level at when this tax is payable should be increased accordingly.

Gayle · 12-03-2006, 22:29

But it hasn't increased accordingly and now it is very real threat to the rest of us.

WillowTheWhisp · 12-03-2006, 22:40

I don't think there should be such a thing as inheritance tax because the money has already been taxed once. But then there's the problem with property and the increased value so you could argue that that hasn't been taxed.

Still think it should be increased in line with property values though or done away with altogether.

pendy · 13-03-2006, 16:58

Inheritance tax will hit more and more people as house values rise. The problem is that quite often the only really valuable asset is the family home, and that tips the value over the nil rate band. You can make lifetime gifts, but they may be subject to tax. I'll check with David the amount you can gift every year, in case any of us is well off enough to do it! There is also a rule about gifts out of income, but for most of us that's only a few quid at Christmas. If anybody is really worried, pm me and I'll ask the tax guru.