I was amused by this opening to a report in the FT this morning:
Wealth managers say their clients are increasingly worried the Treasury could crack down on the UK's “generous” inheritance tax rules in an attempt to plug the country's gaping fiscal hole.
Tax experts have flagged that the government could in the Autumn Budget look to cap the total amount that a person can “gift” over a lifetime without incurring inheritance tax, so long as they live for seven years after passing on the assets. This seven-year timeframe could also be extended, they have suggested.
Oh no!
The wealthy might have to pay tax!
And their advisers might not make money telling them how they can avoid doing so!
Shock!
Horror!
Hold the front page!
The world might end!
Except it won't, of course. Instead, we might live in a fairer country where more people have opportunities, and poverty might be reduced. But when have most of the wealthy ever worried about that?
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And how many of these advisers, along with their lobbyists and the cheerleaders in the MSM, will be pressuring the government to water down or outright remove any of these proposals (if, indeed, they are being considered)?
Craig
I wonder if you have a wealth tax would you also need an inheritance tax?
Or to put it another way, is inheritance tax a wealth tax with a generational crystallisation event.
You would need an inheritance tax
Life and death are different events, after all
When gov pays a civil servant, it collects tax and then when this CS pays his bills, buys goods and services, with these money pay extra tax. Every money related behaviour is taxed (controlled). I would have said every time money moves it is (can be) taxed, but it may be taxed even If it is just stored (deposited).
So?
You can’t take it with you, we should actively encourage people to pass on or pay forward their debts to society but also their assets. Susan, you don’t need that 5 bedroom house at 58, it’s OK to get somewhere smaller.
Who is Susan?
Do you gave the right to tell her to move?
Why?