It’s utterly ridiculous that the IHT gift allowance is only £3000 per year. It has been set at this level since 1981! I’m not joking it’s been frozen for 43 years, if you adjusted for inflation it would be around £11,250.
1981! I had no idea. Ridiculous as you say. Regular gifts out of excess income is a good way to pass on a fair bit. Need to keep detailed records though.
I couldn't agree more. Its something sucessive governments have looked the other way over. Forcing families into IHT after years of paying for and yes paying tax on more than once its an abomination. We face substantial tax much the same as farmers will. We'll have to sell the family home and assets to pay the bill. And for what? To give it to the EU? Or illegal migrant handouts. Or worse still to feather MP's nests. I see Starmer had a law passed for his own private use to avoid inheritance tax on his pension. Two tier as usual.
@@EoinBrennan-bd9ny yes we used this option to reduce the IHT burdon, But still, successive governments have failed to keep pace with the allowances. Obviously a deliberate tactic to get more people paying tax. Our money for the government to spend on their heating bills whilst the nation shivers 😥😥
if you put main home in trust upon first death the estate is not growing in the surviving partner.. instead it grows in the trust, upon 2nd death whole property is taken by trust. then IHT is due every 10 years at 06%. it best way to plan now. use the pensions built to get life insurance. then IHT will be paid upon 2nd death.
I have to say that living in Surrey let alone London and other property hot spots, it really isn't unusual to have a property worth 1 million or considerably more. It is simply appalling, this government has wrecked so many people's pensions plans and left an almighty headache to budget for having 40% physically stolen from you or one's children by a lying chancellor.
An ex-council house up the road is worth £650,000. When a single parent dies, how can their kids suddenly find money to pay HMRC? It is a cruel and stupid tax that hits ordinary people, not just the rich.
That was well explained, thank you. This is now a big worry for a lot of us even with modest assets. IHT is morally wrong, why should the government have any of a deceased persons lifetime savings?
Single person without any descendants hardly needs to worry about legacy or IHT?? Nephews Nieces, they could just ask their parents to set up a Junior ISA and pay into that.
If your home is worth a lot ( say around the million mark ) , the sole survivor could do an equity release and then spend it or start giving away. This would lower how much equity/funds they would have left to pass on as the lender has first dabs on the property on death.
this is true. I was watching a piece the other day which forecasts how much the size of the population is set to grow by, and it asks how we're going to cope with the housing needs. Some suggestions were of micro homes, which are common in places like china. I can't help but think anyone the property ladder now is extremely lucky.
No surprise at all. Sure the plan is to get everyone paying IHT in the future. Spend your life working towards an average home only for it to be taxed to the hills when you die. The way the property market has gone the last 30 years kids will soon dream of owning a mid terrace house.
This is assuming you have children and predominantly for couples. Either way get some professional advice, between gifting and other things you can do, there's a lot of detail to pay attention to.
Fun fact before equal rights for gay couples, couples would legally adopt their spouse to ensure asset transfer. Turns out you can adopt an adult, which is little known & very interesting.
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The most coherent and easy to understand explanation I've seen or heard. Fabulous...thank you. Subscribed.
Thanks and welcome
It’s utterly ridiculous that the IHT gift allowance is only £3000 per year. It has been set at this level since 1981! I’m not joking it’s been frozen for 43 years, if you adjusted for inflation it would be around £11,250.
1981! I had no idea. Ridiculous as you say. Regular gifts out of excess income is a good way to pass on a fair bit. Need to keep detailed records though.
I couldn't agree more. Its something sucessive governments have looked the other way over. Forcing families into IHT after years of paying for and yes paying tax on more than once its an abomination. We face substantial tax much the same as farmers will. We'll have to sell the family home and assets to pay the bill. And for what? To give it to the EU? Or illegal migrant handouts. Or worse still to feather MP's nests. I see Starmer had a law passed for his own private use to avoid inheritance tax on his pension. Two tier as usual.
Stating what you can and cannot do with your money is a characteristic of a communist country.
If it makes you feel any better, you can carry any unused allowance from the year previous, so £6,000 in total if none was used the year before lol
@@EoinBrennan-bd9ny yes we used this option to reduce the IHT burdon, But still, successive governments have failed to keep pace with the allowances. Obviously a deliberate tactic to get more people paying tax. Our money for the government to spend on their heating bills whilst the nation shivers 😥😥
Helpful, thanks, your hard work genuinely makes a difference to people’s lives, but obviously only if they listen and act 😂
if you put main home in trust upon first death the estate is not growing in the surviving partner.. instead it grows in the trust, upon 2nd death whole property is taken by trust. then IHT is due every 10 years at 06%. it best way to plan now. use the pensions built to get life insurance. then IHT will be paid upon 2nd death.
I have to say that living in Surrey let alone London and other property hot spots, it really isn't unusual to have a property worth 1 million or considerably more. It is simply appalling, this government has wrecked so many people's pensions plans and left an almighty headache to budget for having 40% physically stolen from you or one's children by a lying chancellor.
An ex-council house up the road is worth £650,000. When a single parent dies, how can their kids suddenly find money to pay HMRC? It is a cruel and stupid tax that hits ordinary people, not just the rich.
That was well explained, thank you. This is now a big worry for a lot of us even with modest assets. IHT is morally wrong, why should the government have any of a deceased persons lifetime savings?
Single person only gets 325 k allowance not 500k they not allowed to even pass to nieces nephew without tax if they don’t have children
Single person without any descendants hardly needs to worry about legacy or IHT?? Nephews Nieces, they could just ask their parents to set up a Junior ISA and pay into that.
Hi there, if I take a drawdown @ age 55 and take money from drawdown can I convert the remaining money in the drawdown to an annuity @ age 75
If your home is worth a lot ( say around the million mark ) , the sole survivor could do an equity release and then spend it or start giving away. This would lower how much equity/funds they would have left to pass on as the lender has first dabs on the property on death.
Unfortunately a lot of properties across the country will activate the 40% if not planned for properly
nil rate band is 175
allowance is 325
yellow text on screen
A farmer with a spouse will have IHT relief of £2.65 million. More than enough. And for the agriculture element they have 10 years to pay it.
"more than enough" - who the feck are YOU to say?
remember house prices will double in 20 years to what they are now..
this is true. I was watching a piece the other day which forecasts how much the size of the population is set to grow by, and it asks how we're going to cope with the housing needs. Some suggestions were of micro homes, which are common in places like china. I can't help but think anyone the property ladder now is extremely lucky.
No surprise at all. Sure the plan is to get everyone paying IHT in the future. Spend your life working towards an average home only for it to be taxed to the hills when you die. The way the property market has gone the last 30 years kids will soon dream of owning a mid terrace house.
The value of money will virtually half as well. Go check what's happened using the BOE own inflation calculator for the past 10 and 20 years.
No they won't. There is a natural ceiling on house prices which is set by income levels and affordability testing.
@@OneAndOnlyMe they just extend the term of the loan to get around the affordability criteria.
Single £500k ?? It’s only £325k if you don’t have children to leave your property to them. The additional £175k property IHT allowance isn’t allowed
This is assuming you have children and predominantly for couples. Either way get some professional advice, between gifting and other things you can do, there's a lot of detail to pay attention to.
Been engaged 25 years but will now have to get married ! Thanks labour😢
Fun fact before equal rights for gay couples, couples would legally adopt their spouse to ensure asset transfer. Turns out you can adopt an adult, which is little known & very interesting.
@@Asboalf1452 getting married it is better, you won’t lose anything but gaining at least a divorce one day. I am kidding.
@@Claire-dg3gh Can you marry your own child ?