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The article that Remainers need to read

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zico
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Re: The article that Remainers need to read

#159349

Postby zico » August 13th, 2018, 7:12 pm

Now we are faced with Inheritance Tax at 40% on a fair chunk of what is left. Even paying for care for a few years will not make much difference. One is tempted to take a lot of expensive holidays, or change cars frequently, to use some of the taxable band. There are limits to how much one can pass on to grandchildren in advance, except as Potentially Exempt Transfers. Charitable donations or bequests may be the way.


Isn't it a great thing for anyone to be in a position to pay Inheritance Tax? It means you've amassed sufficient wealth that you can spend whatever you like and you'll still be above the threshold for Inheritance Tax, and even better, it's a tax you don't even have to pay while you're alive. You make it sound like a problem!

I get the idea of having expensive holidays because you want them - that's perfectly sensible and rational - but it seems that some people would rather waste their money rather than let the government get their hands on any of the money. Let's not forget, if people do fritter away all their assets, it's the government who'll be taking care of them for whatever support they may need in the future.

hiriskpaul
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Re: The article that Remainers need to read

#159357

Postby hiriskpaul » August 13th, 2018, 7:50 pm

Charlottesquare wrote: 1970s inflation was great for the asset rich downsizer, if wages again start running away then the same will happen again; high inflation is a boon for non leveraged property owners but not so great for the JAMs, they are the ones who will suffer, galloping interest and job insecurity.

If I was self interested I ought to fully embrace Brexit/ devaluation/high inflation etc, I will also win as I own a house in Sweden, if sterling devalues that will be worth more in sterling terms if I sell it, the subsequent high interest we could well see in the UK will have negligible impact on me as I have been in my current house for 21 years this November, my mortgage is tiny, but I am not enough of a rogue to push an economic case for my own self benefit.

The fall out of the EU via Brexit if no agreement will hit all those who have not had a long working life to accumulate assets, the have nots, a lot of whom have been fooled into thinking it will improve their lot in life.

I am not convinced you are right here. My fear is that we are in for a very hard left government that will be very strapped for cash. What will they do? IMF eventually maybe, but not before they have clobbered the "rich" with:
- a mansion tax
- myriad windfall taxes
- a wealth tax
- scrapping of ISAs except perhaps for the first £5000
- supplemental tax, or NI, on "unearned" income
- private landlords regulated out of existence
- other revenue raising schemes I have not thought of

Denis Healey once said he would tax the rich till their pips squeak and he was nowhere near as left wing as this lot.

Charlottesquare
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Re: The article that Remainers need to read

#159358

Postby Charlottesquare » August 13th, 2018, 7:56 pm

And there is always a bequest to charity if you cannot stomach HMG getting their mitts on it- this is actually something I just mentioned to my spendthrift daughter this evening that I possibly ought to do with her 50% share of our estate (well it's that or a trust). However I suspect I will have mellowed by tomorrow. :D

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Re: The article that Remainers need to read

#159360

Postby Charlottesquare » August 13th, 2018, 8:05 pm

hiriskpaul wrote:
Charlottesquare wrote: 1970s inflation was great for the asset rich downsizer, if wages again start running away then the same will happen again; high inflation is a boon for non leveraged property owners but not so great for the JAMs, they are the ones who will suffer, galloping interest and job insecurity.

If I was self interested I ought to fully embrace Brexit/ devaluation/high inflation etc, I will also win as I own a house in Sweden, if sterling devalues that will be worth more in sterling terms if I sell it, the subsequent high interest we could well see in the UK will have negligible impact on me as I have been in my current house for 21 years this November, my mortgage is tiny, but I am not enough of a rogue to push an economic case for my own self benefit.

The fall out of the EU via Brexit if no agreement will hit all those who have not had a long working life to accumulate assets, the have nots, a lot of whom have been fooled into thinking it will improve their lot in life.

I am not convinced you are right here. My fear is that we are in for a very hard left government that will be very strapped for cash. What will they do? IMF eventually maybe, but not before they have clobbered the "rich" with:
- a mansion tax
- myriad windfall taxes
- a wealth tax
- scrapping of ISAs except perhaps for the first £5000
- supplemental tax, or NI, on "unearned" income
- private landlords regulated out of existence
- other revenue raising schemes I have not thought of

Denis Healey once said he would tax the rich till their pips squeak and he was nowhere near as left wing as this lot.


Actually I have little issue with the NI argument, given its disconnect with pensions/benefits etc I would likely amalgamate it into income tax to make a newly structured tax that applies to all income, just have a higher PA for say the retired to compensate. Why should a sole trader's profit be subject but a director's dividends or that rental income be outwith?

However I would scrap IHT and bring in CGT on death, so all tax free gains re housing etc will eventually fall into charge but the estates of the frugal who saved in bank accounts and paid income tax on the interest will not be impacted one jot on death.

In effect CGT on housing but with a rollover/reinvestment relief for when one is climbing the housing ladder and an inescapable CGT bill on disposal by sale, gift or death. (with spousal exemption- bites on second death if no disposal beforehand)

ursaminortaur
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Re: The article that Remainers need to read

#159371

Postby ursaminortaur » August 13th, 2018, 8:58 pm

hiriskpaul wrote:
Charlottesquare wrote: 1970s inflation was great for the asset rich downsizer, if wages again start running away then the same will happen again; high inflation is a boon for non leveraged property owners but not so great for the JAMs, they are the ones who will suffer, galloping interest and job insecurity.

If I was self interested I ought to fully embrace Brexit/ devaluation/high inflation etc, I will also win as I own a house in Sweden, if sterling devalues that will be worth more in sterling terms if I sell it, the subsequent high interest we could well see in the UK will have negligible impact on me as I have been in my current house for 21 years this November, my mortgage is tiny, but I am not enough of a rogue to push an economic case for my own self benefit.

The fall out of the EU via Brexit if no agreement will hit all those who have not had a long working life to accumulate assets, the have nots, a lot of whom have been fooled into thinking it will improve their lot in life.

I am not convinced you are right here. My fear is that we are in for a very hard left government that will be very strapped for cash. What will they do? IMF eventually maybe, but not before they have clobbered the "rich" with:
- a mansion tax
- myriad windfall taxes
- a wealth tax
- scrapping of ISAs except perhaps for the first £5000
- supplemental tax, or NI, on "unearned" income
- private landlords regulated out of existence
- other revenue raising schemes I have not thought of

Denis Healey once said he would tax the rich till their pips squeak and he was nowhere near as left wing as this lot.


It was a much reported misquote - he was actually talking about property speculators

https://en.wikiquote.org/wiki/Denis_Healey

Squeeze property speculators until the pips squeak

Speech in Lincoln (18 February 1974), quoted in The Times (19 February 1974), p. 4. Misreported as "tax the rich until the pips squeak". "The pips squeak" metaphor was originated by Sir Eric Campbell-Geddes and later used by David Lloyd-George.


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