Inheritance tax is an entirely unnecessary tax. All inheritance is wealth on which tax has already been paid. It is therefore a vulture tax feeding off the remains of the hard earned wealth of a lifetime of sacrificial work, which few if any politician has experienced. That’s the first point. Secondly, some voters believe it will largely affect only those that have been successful and therefore every socialist loves it, because they envy anyone that has done better in life than they have. So, they delusionally believe that such a tax will ‘level the playing field’ and make for a more equitable society. Truth is that it has the entirely opposite effect. You really think the kids of Elon Musk are going to be hard done by due to an inheritance tax? Only the dumb could believe that the inheritance tax is going to largely affect the well off. It conversely affects the less well off in a much greater measure. You have worked hard all your life to get yourself on the property ladder and the least you can leave behind is a helping hand to your children to get on in life but then the government swoops in and walks off with a wad of your wealth for nothing given in return. This keeps the working class down and dependent, which is essential for socialism to survive. It also keeps the next generation dependent on the banks for a hefty mortgage, when zero inheritance tax would have been life changing for many struggling families. And it’s not as if this money will disappear. It will be spent in the economy where it will be surely taxed. The difference here is that it is the individual that will decide on what that money is spent and not a wasteful government that the person probably didn’t even vote for.
@@PSinghN-gx3em i take it your an a countant ,under current rules Amazon pay 4%,British gas 11% all available at companies House, while employee,under 50k pays 20%UNDER CURRENT RULES ,UNFAIR,IMMORAL, GREED
Whats really bad is our parents get tax😮ed one last time when their dead on the one thing they worked hardvfor to leave their loved ones... Mean while our government gives money to people who laugh at this country 😢😢😢😢😢
Look you lot avoid IHT if your old and grey give it away or spend it...but most of you old folk hang onto it until it's too late...spend it give it away and live for another 7 years just do it
Inheritance tax was founded a long time ago because of the concern that some ultra-wealthy families were becoming too powerful, generation on generation. Back then, your estate would have needed to be valued at today’s equivalent of close to £200 million to qualify for the tax. But the threshold has not kept pace with inflation since then, and so nowadays, more and more estates are falling into this trap. This really should be taught in schools. I’ve known about this tax since I was a child and so it baffles me that so many adults do not understand that it will impact their families. There are lots of people who voted for the Labour Party who are going to get a very nasty shock when they see what’s going to happen to either their estates or their inheritance in years to come. Imagine you’re a Millennial who was counting on some inheritance money to help you to purchase a home… voting Labour wasn’t such a good idea after all, was it?
All taxes are today for the poor. Take stamp duty. When I was young that was deemed a tax for the rich, I’ve just moved house, and we just couldn’t avoid it. 10 grand just to move house. Plus VAT on estate agents fees. Unreal. Meanwhile Tony Blair avoided 600,000 in stamp duty using an off shore bank account!
finance & tax is not taught in school for one simple reason. they want everyone to not know the tax rules so that they are all caught out & paying avoidable tax. they especially don’t want people knowing how finance works & how they are robbed by Compound Interest. if schools taught one thing, it should be compound interest & how banks & finance co’s use it to fleece people.
Great video, would like to see an updated video based on Labour budget announcement. There are expected to be some big changes to tax rules and thresholds.
Small family home in south east England is £450,000. Reasonable family home (has a driveway) is £650,000. So your IHT is £65k if you inherit your family home.
Thank you for explaining inheritance tax so clearly; you made it easy to grasp a complex topic. If possible, please share any loopholes you notice that the affluent often exploit. Your insights are invaluable!
The hardest thing for us to cope with when we settled my father-in-law’s IHT bill was just how proud he had been to save and invest for his children and grandchildren throughout his life. He was such a gentle man, and never spent much on himself. He was so proud of what he had achieved for his family and then HMRC took it all and left his life savings account with less than £1000 in it. The government took far more than any of his children ever did. It was just so sad and the only positive is that he wasn’t around to see it happen as it would have destroyed him.
Love this, but I think Labour are looking at all these rules and will make changes. So the super rich will just leave the uk and us “working people” will have to pick up the bill. Typical Labour
It’s death tax not inheritance. If it was inheritance it would be banded by each person who inherited. Currently the government takes its chuck of flesh first then your kids have to split what’s left no matter how many of them there are
The Labour politician had the nerve to say that increasing IHT is ‘effective wealth redistribution’. Yep, redistribution from families to the government. 🤬
Also you can gift out of excess/surplus income (not capital) as long as it does not affect your overall standard of living (ie you do not lower your normal spending habits).
Surprised to learn that you can gift your house to children but can't continue to live in it......where you supposed to go if you already cohabit with children.
People can have a limited company and have A & B shares, so when the A shares dies, the B shares take over control and shares earnings. Houses, rentals, investments etc can be bought in the company, perhaps using a mortgage on their house ( which reduces the equity value) , so reduces the tax bill potentially.
The limited company has to be a trading business, property investment Ltd are unlikely to be treated as a trading business. If you take a mortgage on your main residence and use the money to put into your limited company, the limited company will owe you the money via a directors loan, if you try to write the loan off it will be a receipt of income for corporations tax So taking a loan will only benifit for iht saving if you are gifting the equivalent amount outright and you survive 7 years
@@PSinghN-gx3em yes, a trading company, not a con. So property development, short or long term rentals . The director loan to be recouped from future products and not written off.
Hi. Good video. Re gifts you did not mention some gifts will be subject the CGT (rental house for example) and the pension is only IHT to 75 years old then inheritors marginal rate is applied upon inheriting.
And the rate 40% a joke not to mention paying the tax on vastly inflated values, imagine paying 100k tax on a inherited semi detached in the south East, could happen
Correct me if I'm wrong but during the great fire of London didn't the government pass a bill through Parliament deeming everyone in the country dead allowing them the right to your estate or inheritance giving individuals 7 years from birth to claim their said inheritance or estate back?
I want to avoid inheritance tax altogether by transferring my assets to my wife when I die. She will then distribute my assets as I pre-specified to her - by gifting money to wider family. I trust her. Because she is 5 years younger than me, and she is from "long life genes", I expect her to live more than 7 years after I died, hence when she made the gift (upon my death) on my behalf, by the time she dies, the gifts/inheritance to my wide family will be tax free. QUESTION IS:- How do I transfer my assets to my wife? Do I simply write/make a will to that effect?....or is there a legal procedure/process. Wjat advice much appreciated.
If you gift a house, and continue to live in it as a rental, paying a peppercorn rent to your beneficiaries, would that circumvent the 'with reservation' rule?
Social Care is a much bigger inheritance tax and one that noone wants to think about paying. Current going rate for a care home is £6000 per month. Its a far bigger liability for most people than IHT.
simple solution, keep your savings in precious metals and enable direct access to stocks and shares and your bank account... then just leave a letter to your family and pass on the details...
What if she entered into a joint tenancy with two of her children? On her passing the surviving owners would take ownership without the need for probate.
Wow thanks so much for this superb advice so basically you work hard all your life pay Tax on your earnings, and savings and your pension, then pay again when you die, wow this government are so cool🤨☺️😬 I think I may move to a country that’s less taxable ☺️
I’m just about to start this process unfortunately. I’ve been looking into it, but seems a bit of a minefield. Don’t want the solicitors taking a chunk to do it. Already tested there will be no tax to pay (as in the video, up to £1M). Can you point me in the direction of a straight forward tick sheet approach. TIA.
Uk Iht is on world wide assets, one needs to ensure that all links are totally severed with the uk, this then can mean that your domicile is changed, if you maintain a uk domicile even if you live abroad , iht will still apply , also have to ensure that when one dies, the funeral and burial is also not in the uk
I have no problem with the concept of inheritance tax. My problem with it is that the rate is too high and there are too many loopholes so that the wealthy dont actually enf up paying it. Drop the rate to 20%, raise the threshold and close all the bullsh1t loopholes
I got 2 Question- can i borrow money from direct loan lenders can i invest in crypto? 2- if get credit card & withdraw the money from ATM machine & deposited into my personal bank account to invest in crypto am i break any rules? If so can my money be seized?
Yes, it's £3000 and an unused allowance can be carried forward for 1 year only. You can also gift £250 to as many people as you want but not to the ones who have received £3000 (or part of it).
Values added together if you only have them its 325 kept any value over is taxed at 40 percent but if your own house has used the 325 amount the government gets to tax you at 40 percent all gets complicated if it's going to wife first but if you have houses get a tax account ant on it now
Unearned? Ever heard of family values? The queen left anything to her kid Charles? Or did the royal family just end up making their name and wealth independently from their royal inheritance? AfTER tax, what I do with my assets is my god damn business. Free country my ass
No inheritance tax on agricultural land. It's another way the wealthy get away with not paying as they hoover up land to avoid paying iht when they die. It's hurting young farmers as it's driving up the cost of land
This only applies to money purchase pensions, they can be passed to anyone, does not have to be family - need to have an expression of wish in place with the pension provider, under current rules the money purchase pension plan is exempt from iht whoever it’s left to
@@PSinghN-gx3em I believe it's only fully tax exempt if the person dies before the age of 75. If over 75 the person inheriting the pension needs to pay income tax on it at their appropriate rate.
If you leave your assets to them them then provided you have not used by the tax free allowance of £325k (called the Nil Rate Band - NRB) then this amount would be deducted from net assets and the rest would be subjected to IHT at 40%. (It is worth getting married to utilise spousal exemption.)
The value of the mortgage at the date of death is deducted (as a liability) so the net value of the house would be £150k as at the date of death - which is the relevant valuation for IHT purposes.
Hello. How is pension paid out to beneficiaries? Is this via a cash lump sum? What happens to your state pension when you die? Can you spouse/children inherit it?
What is wrong with the state taxing unearned income?i If inheritors are so desperate for cash, why don't they work for it like so many people have to do? In fact the latter have to work harder still to stay alive because some people think that they are entitled to free money.
It’s criminal to have a lot of very poor people in society and then a handful of very rich people. Please pay your taxes if you want to have a society fit for your kids to actually live in. Tax avoidance and reduction is basically kicking poor people in the head and blaming them for making you do that. Punch up … to the super rich. If a few billionaires paid even 1% tax we could get rid of income, vat, road, fuel tax etc. or you can penny-pinch, save all your money to give to your kids and they won’t have any public services to speak of.
Only the super-wealthy dislike inheritance tax. The fact your spouse don't get taxed, and even if it's passed to children, the first £350,000 is tax-free should tell you everything. Any child complaining about getting £350,000 tax-free, but then being taxed for money above that is clearly so wealthy & greedy that they show no social community.
You would not like inheritance tax If you were single. You had a single uncle with no children and grandchildren. Who left it to his nieces, nephews, sister, friends! We received years ago very small amounts each. After £75,000 inheritance tax was paid First!!! There is discrimination against Single persons. My uncle was not rich. He just had one bungalow!!! Some savings.
