They`re spending our inheritance!
Discussion
In the news over the last couple of days, research reveals more parents are spending their kids` inheritance - and good on them I say! You only live once so experience the world etc :)
Mind you, it could also be because if they don`t spend it, the government will get their greedy hands on it or the family house would be forcibly sold to pay for nursing!
[small] Dear Mummy & Daddy, spend yours as you wish - but would there be enough left for a Tuscan?!:hehe:[/small]
Mind you, it could also be because if they don`t spend it, the government will get their greedy hands on it or the family house would be forcibly sold to pay for nursing!
[small] Dear Mummy & Daddy, spend yours as you wish - but would there be enough left for a Tuscan?!:hehe:[/small]
My nan, well below poverty sits in the COLD to save on the gas bills so she can add a few pence to grandkids presents. My other nan (deceased) was quite rich and blew the lot travelling for 10 years before passing away - good on her I say!
If I ever have any money when retired, I'm gonna p*** it up the wall !!!!!!!!!
If I ever have any money when retired, I'm gonna p*** it up the wall !!!!!!!!!
pdV6 said:
With the added advantage of class homogenisation as the money is no longer passed as family money.
Actually, I believe that this was the original intent of death duties; i.e. to slowly erode the fortunes (and thus power) of the nobility.
Not to thread jack too much, what are peoples views on inheritence tax ?
I see it for the reason Plotloss see's it and i personally think its a good idea (e.g. prevents endless generations of mega rich paris hiltons).
Scorp, I think you'll be in a minority of one. IHT is a horrible way of the government getting it's paws into money that has already been fully taxed and put away to give the next generation a leg up.
If it was on the super rich then it would have a threshold of £1,000,000. The super rich will have financial planners making sure the government doesn't get a penny anyway. It's just one more tax on the middle class
If it was on the super rich then it would have a threshold of £1,000,000. The super rich will have financial planners making sure the government doesn't get a penny anyway. It's just one more tax on the middle class
scorp said:
what are peoples views on inheritence tax ?
As has been mentioned, its vile, evil and grossly unfair.
You work hard all your life, all the time giving the government a huge share. Any time you spend anything you give them yet another share. And if you have the gall to save any of it to pass on to your kids, guess what? The government gets another huge bloody chunk of it.
The Paris Hilton types you refer to fall into 2 categories, those that grow up and learn to manage the family money sensibly and those that kill themselves off through excess. Darwinism at its best!
scorp said:
I see it for the reason Plotloss see's it and i personally think its a good idea (e.g. prevents endless generations of mega rich paris hiltons).
Okay so she does kind of hurt my argument
but:- You are taxed on your income all through your life, taxed when you spend most of it (Fuel tax, tobacco tax, VAT, booze tax, etc) then they have the damn gall to go and tax you again when you die on what you have left, possibly because their p1$$ed off that you didn't spend it so that they could tax you on it!
IHT is wrong, and even if you were to convince me otherwise there is no way on earth that the Nil Rate Band is high enough in this day and age, especially after the recent house price boom.
BliarOut said:
Scorp, I think you'll be in a minority of one. IHT is a horrible way of the government getting it's paws into money that has already been fully taxed and put away to give the next generation a leg up.
If it was on the super rich then it would have a threshold of £1,000,000. The super rich will have financial planners making sure the government doesn't get a penny anyway. It's just one more tax on the middle class
Define middle class? I am "working class" and my sons would lose out on 5 figure sums when i snuff it (with a fully paid up mortgage).
I think the limits are too low, i agree on that. In principle however IHT is good if applied to the super rich (e.g. ones which can afford to give their next several generations a life of luxury with no input to the wider economy whatsoever).
However IHT isnt really necessary as the lazy rich kids would spend money quicker than they earn it, and end up deservedly poor anyway; And if not, god forbid, they make money, we all win anyway, as they boost the economy for all of us.
scorp said:
I think the limits are too low, i agree on that. In principle however IHT is good if applied to the super rich (e.g. ones which can afford to give their next several generations a life of luxury with no input to the wider economy whatsoever).
Yes, but the country misses out on the income tax, vat and all the other taxes generated from that money over the years, so its of more beniefit in the hands on the rich i fell
vixpy1 on tour said:
I think the limits are too low, i agree on that. In principle however IHT is good if applied to the super rich (e.g. ones which can afford to give their next several generations a life of luxury with no input to the wider economy whatsoever).
Yes, but the country misses out on the income tax, vat and all the other taxes generated from that money over the years, so its of more beniefit in the hands on the rich i fell
The net result is worse i think, if they are forced to recreate their wealth from scratch (or nearly) then its going to have a positive net effect on the economy, on the other hand, if they inherit their wealth, they consume from the economy without adding anything into it. Depends on what you think is the higher priority, the wider economy or tax revenue for the government, im in the first camp.
scorp said:
if they inherit their wealth, they consume from the economy without adding anything into it. Depends on what you think is the higher priority, the wider economy or tax revenue for the government, im in the first camp.
eh?
They spend the income from the money, and pay tax on it.. like everyone else, how is that 'not contributeing to the ecomomy?
pdV6 said:
scorp said:
if they inherit their wealth, they consume from the economy without adding anything into it.
How do you work that one out? Every "toy" they buy will generate tax income...
They arent exchanging labour for goods, e.g. not running a business empire or working in a factory, means the economy does not grow (although their consuming will grow the economy, so my argument kind of moots itself).
ill get my coat then...
>> Edited by scorp on Wednesday 20th July 16:16
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