Liveline: Thread with no name, Host with no shame

What’s wrong with scrapping inheritance tax. Tge property has a notional value at the time however whatever activity you undertake with the property will be taxed, tax on rental income or sales tax.

Yes, I don’t get why an asset already having tax legitimately paid on it by its owner should attract further tax when it’s transferred on to another party via inheritance. The concept of “contribution” is stupid and j don’t get the views of some here. There are many forms of contribution, not all off them monetary. A person leaving property to an individual isn’t doing it to some randomer. It’s a family member or friend who is important to the owner in some way and has contributed to the owners life.

Having inherited a property, I might want to renovate. I pay tax. I might want to sell, I pay tax on the profits then or I want to rent, I also pay tax on that. I’m even penalised now if I leave the property vacant. So basically I attract tax anyway but just for fun and giggles, let’s throw on a 33% charge on the notional value of the property just because we can.

Yes, With a substantial property I’m sure there are options there. I know farms are protected. I happen to agree with that. From what I can see the “Inheritance Tax” scheme is nothing more than a way to force the average person to liquify assets so the government can get their cut. Once liquified the money left post tax attracts additional tax either through sitting in an account or purchase of a new property or investment. I see this as being “wrong”.

It could be that inheriting a decent property in an established area from a parent without tax implications allows a family to upscale their property in line with their grosing family and allows them to pay back a loan for renovations rather than a mortgage for a new purchase. This seems like a better outcome to me. If they have an existing property it may either end up on the market or in rental. That outcome will attract its own tax. Arguments along the lines of “property tax prevents property being accumulated by a small number at the top of the tree” are BS in modern society. I don’t doubt it made sense in the 19th and even into the 20th century but in modern society I don’t see people likely to hoard property within families. In fact, given the heated market, we should allow families upscale if a parents property is a better fit. It will then free up their old property for occupancy, either through rental or sale. Right now, if they inherit the parental home, they either spend a substantial lump to pay inheritance tax, or sell, paying the tax and leaving them running around looking for a new similar property in a good area. They then incur extra costs through conveyance fees etc. Having paid the inheritance tax, they also pay stamp duty on a new purchase. How this is not seen as a government scam is beyond me.