Forum Topic

Bad and good news and worries.

There was bad news during the build up to the Scottish Referendum. Leading up to voting day, the London Stock Market and property prices lost £Billions. On Friday, some of the losses suddenly were restored and now look to go even higher now that the vote is NO. But soaring London house prices mean more and more ordinary folk are being drawn into the possibility of heavier Inheritance Tax. - yhat's worrying news. Any opinions?

Gerry Tan ● 4210d18 Comments

My friend Henry and Babette his wife run the StadtsMission in Chemnitz Harthau. It provides a wide range of, what we would call, 'social services' mainly to the elderly and disadvantaged at a fraction of the cost of the state and local government. Everyone wins.

Nigel Brooks ● 4208d

Amen, Nigel.

Graham Weeks ● 4208d

Which is why the German model of lower taxation being used to fund Der Stadtsmission, in which local churches and charities deliver a high proportion of social care, plays so well both to service users and to people of all political 'leanings'; as the money is used far more wisely than when it is 'dribbled' from a centrally administered fund.

Nigel Brooks ● 4208d

I am always amazed by my left of centre friends who think that the government which takes their money by taxation is going to utilise it better than if they could give that money to the charities of their choice.

Graham Weeks ● 4209d

As one lies on one's deathbed, on the threshold of taking the Great Journey Into The Unknown, one can find solace with the thought that the State will spend one's inheritance tax wisely.  http://www.itv.com/news/2012-11-01/foreign-office-spent-10-000-re-stuffing-20ft-anaconda-snake-called-albert/

Andy Horridge ● 4209d

Prescribing two inhalers on one prescription cost the NHS less than two scripts for one inhaler.

Graham Weeks ● 4209d

Well, that's on average, of course, Keith, but I believe that Gerry does have children and I bet he sent them to school. Your and my generation, the babyboomers, are predicted to take out, on average, 117% of what we've paid in by the time we die. That can't just go on and on.I agree about the 'free' NHS and once made this point to the practice nurse after she'd made some comment about how generous it was of her to prescribe me two asthma inhalers at a time instead of just one.

Susan Kelly ● 4209d

Not overly sure about that Susan, if you haven't had kids in full time education or now have parents in a care home funded wholly or partly by the state. As for 'free NHS' I do wish people would stop referring to it as 'free'. It is not free but pre-paid by those of us who pay tax and NI and free only to those who do not pay in any tax etc. The NHS has certainly cost me more than I have cost it thus far, which in many ways is a good thing...

Keith Iddon ● 4209d

Gerry, unless you were a high-rate taxpayer all your working life, you will have taken out more than you've paid in.

Susan Kelly ● 4209d

Yes indeed, from taxation. the point I am making Gerry is that we can all moan till the cows come home about taxation levels but the NHS and State Pension have to be funded, else we end up with the USA situation of VERY basic healthcare and nominal old-age payments. The Inheritance tax rate in the UK is ridiculously high (still lower than many European nations though) but the 'politics of envy' will not see it reduced in the near future IMHO

Nigel Brooks ● 4209d

"...old age pension, the free NHS, the free bus pass and winter fuel allowance."Only the bus pass and winter fuel allowance are really free.  The old age pension and "free" NHS have been paid for from subscription payments over many years.

Gerry Tan ● 4209d

How's your old age pension, the free NHS, the free bus pass and winter fuel allowance Gerry?There are many lower tax economies and perhaps we should all have a greater say in how or money is wasted but the safety net is there unlike, as example, the USA where 'welfare' is still a stigma and woefully under-financed in the 'richest' economy in the world.

Nigel Brooks ● 4209d

My sentiments also Graham.  The government are a thieving lot who take take take and seldom give.

Gerry Tan ● 4209d

I have consulted my solicitor who has I trust drawn up wills for Katy and me which will avoid death duty. I regard this tax as a thieving government stealing the possessions of the deceased. Every time I visit a National Trust property my feelings are mixed. Lovely to visit it but sad that it was given in lieu of surrender to the thieving state.

Graham Weeks ● 4209d

I don't think that it goes entirely without saying. Undoubtedly, money does get wasted but children do get taught and patients do get treated/cured and fires do get put out, among other things.

Susan Kelly ● 4209d

I am largely sceptical about the status and work of many so-called 'charities' in the UK, but if a person, in their lifetime, has some specific interests, and if there are any worthwhile registered charities associated with those interests, then any bequests made to the charity (or charities) in that person's Will will be free of inheritance tax liability (the charity, or charities, must be registered with the UK Charities Commission).  To that end, with prudence and allowing for a person's 'IHT nil rate band' it is possible to draft a Will such that no IHT will be due 'when the time comes'.  In short, with careful Will planning, it is possible for worthwhile charities to benefit from a deceased's estate where the alternative would be IHT being levied (it goes without saying that those funds will get pi**ed down the drain by the State).

Andy Horridge ● 4210d

That's true Susan, but it would be comforting to know at present, that HM Government doesn't rejoice too much in their coffers being topped-up by ordinary folks' hardwon inheritance!

Gerry Tan ● 4210d

I wouldn't worry about Inheritance Tax on your estate, Gerry, as you'll be dead.

Susan Kelly ● 4210d