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Old 18th Mar 2017, 19:14   #1 (permalink)
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Probate Tax

What kind if numtys decide our new taxes,
I am not in principle against a new tax to raise revenue.
However, to tax a potential inheritance before the recipient has actually received the money is totally un reasonable.
I am sure that the vast majority of people who stand to receive a large inheritance, would be unable to pay upfront. receiving the inheritance could take months or even years. Why is it not reasonable to say that the tax does not have to
be paid until the assets are actually realised!
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Old 18th Mar 2017, 19:33   #2 (permalink)
 
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Quote:
Originally Posted by Meldrew View Post
What kind if numtys decide our new taxes,
I am not in principle against a new tax to raise revenue.
However, to tax a potential inheritance before the recipient has actually received the money is totally un reasonable.
I am sure that the vast majority of people who stand to receive a large inheritance, would be unable to pay upfront. receiving the inheritance could take months or even years. Why is it not reasonable to say that the tax does not have to
be paid until the assets are actually realised!
The tax system in the UK is designed to protect the wealthy, crucify the well off and bribe the poor.
The probate laws are totally unreasonable but only effect the people designated as those who should pay for the "system".
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Old 19th Mar 2017, 13:01   #3 (permalink)
 
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Our local bigwig, Duke of Westminster was the richest man in the UK. When he died last year left all his billions to his son.

With no death duties - what about that then?
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Old 19th Mar 2017, 16:09   #4 (permalink)
 
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Funfly, Careful planning is the answer. Using trusts so assets don't belong to the individuals is one way.
Inheritance tax, and how the Dukes of Westminster avoid it on their 9bn fortune

The Alternative Investment Market (i.e. AIM Shares) allow family-run businesses to transfer assets, and retain control of their business without paying inheritance tax. By putting one's investment portfolio (e.g. stocks & shares ISAs) into certain AIM shares any shareholder can take advantage of this route too. There are plenty of pitfalls with this route for the unwary, so research is essential.

'We put 500,000 into Aim shares to avoid inheritance tax' - Telegraph
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Old 21st Apr 2017, 08:06   #5 (permalink)
 
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Planned increase scrapped - for now!

Probate fees: Planned increase scrapped ahead of election - BBC News

However:-

Quote:
A senior Conservative declined to say if the scheme would be brought back if the prime minister was re-elected.
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Old 22nd Apr 2017, 01:09   #6 (permalink)
 
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Like the guy with a 50 buck note hanging out his zipper.
When asked why ,he said pro bait.
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Old 22nd Apr 2017, 19:35   #7 (permalink)
 
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Quote:
Originally Posted by funfly View Post
Our local bigwig, Duke of Westminster was the richest man in the UK. When he died last year left all his billions to his son.

With no death duties - what about that then?
The assets were never his in the first place....despite the usual stuff of what everyone says about "him" being the richest man.
He was more akin to the CEO of a large company - that company being his family firm managing the family's estate and investment holdings.
The assets were never in "his" name - they were in the company's name.

The reason Inland Revenue have always insisted on them being paid IHT plus probate fees prior to probate being granted is simple self interest.
We all know what would happen if they did not. The executor would get probate, not pay the tax, do a runner, give it to all those in the will and everyone in the chain would deny "they" had any tax to pay, and inland Revenue would be left chasing the tax....

The next moan about IHT usually goes along the lines of it being a tax on something already taxed.
Well VAT is a tax on income spent which has already been taxed, as are many other things we pay like insurance premium tax, petrol duty etc etc.
In fact most of the IHT due when it is is due is on property and shares. These have often been held for decades and have never been subject to capital gains tax. So actually it is the case that most IHT is levied on things which indeed have never been taxed.
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Old 22nd Apr 2017, 20:32   #8 (permalink)

 
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Quote:
The assets were never his in the first place
His assets were his in the first place.

That's why he used tax dodges to dodge taxes on his assets in the first place.
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Old 22nd Apr 2017, 20:38   #9 (permalink)
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One wonders what HM 'owns'.

No clearer . . .
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Old 23rd Apr 2017, 03:25   #10 (permalink)
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An aunt of my wife's died in Belgium, where she lived, nice lady left her estate, including an apartment, to her six nieces and nephews, my wife being one, living with me in Australia and the others, being Dutch, living in The Nederlands. Belgium tax office said, "as none of you live in Belgium taxes on the estate are 46%", right, we said, as soon as the apartment is sold we will advise you and you can levy the tax. "Oh no", they cried, "We have valued the estate at Exxx,xxx, the tax payable is Xxx,xxx and you have six weeks to pay, otherwise we will tax you at15% per month overdue". They overestimated the value of the apartment by Euros 100,000, no redress or claim allowed!
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Old 23rd Apr 2017, 12:03   #11 (permalink)
 
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Quote:
Originally Posted by dsc810 View Post

The reason Inland Revenue have always insisted on them being paid IHT plus probate fees prior to probate being granted is simple self interest.
We all know what would happen if they did not. The executor would get probate, not pay the tax, do a runner, give it to all those in the will and everyone in the chain would deny "they" had any tax to pay, and inland Revenue would be left chasing the tax....
It would be more equitable if HMRC allowed the probate fee and IHT to be paid out of the estate before probate is granted and distributions can be made. What they are doing currently is causing stress for executors and creating lucrative business for the banks.
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Old 23rd Apr 2017, 17:59   #12 (permalink)
 
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IHT is an issue for rich people, people want to get a hold of the wealth that is left to them and don't wish to pay any tax on it.

If you don't want to pay tax then free to donate the estate for the betterment of the people.

Set a reasonable lifetime limit per person circa 400k and then everything else is taxable irrespective of whether it is in family trusts set up to evade tax or not.
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Old 23rd Apr 2017, 19:11   #13 (permalink)
 
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Quote:
Originally Posted by parabellum View Post
An aunt of my wife's died in Belgium, where she lived, nice lady left her estate, including an apartment, to her six nieces and nephews, my wife being one, living with me in Australia and the others, being Dutch, living in The Nederlands. Belgium tax office said, "as none of you live in Belgium taxes on the estate are 46%", right, we said, as soon as the apartment is sold we will advise you and you can levy the tax. "Oh no", they cried, "We have valued the estate at Exxx,xxx, the tax payable is Xxx,xxx and you have six weeks to pay, otherwise we will tax you at15% per month overdue". They overestimated the value of the apartment by Euros 100,000, no redress or claim allowed!
I'd have it torched, then ask for a revalustion....
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