Inheritance tax (IHT) is one of the most hated taxes of all. In a way that’s strange, given that until recently, only 4% or 5% of estates were likely to pay.
I think it’s the principal people don’t like. They’ve been taxed on their income and wealth all their life, only for HMRC to swoop on what’s left when they die.
Especially since that tax is imposed at a punitive 40%.
IHT is likely to become more unpopular still, thanks to chancellor Rachel Reeves. She slapped IHT on farmers, businesses and unused pensions, apparently oblivious of the damage this will do.
Many farmers will no longer be able to pass on their land to children, forcing them to sell to greedy landowners who will plaster them with solar panels rather than grow food.
Privately run businesses will face inheritance tax bills running into tens of millions of pounds, which means their children won’t be able to inherit. Otherwise thriving UK enterprises will get broken up and effectively disappear.
Families also hate the fact that Reeves has slapped IHT on unused defined contribution pensions on death. Incredibly, many families will have to pay both IHT and income tax on the same money.
They will face a combined double death tax charge of up to 67%.
The number of families who pay IHT may soon hit 10%, and those caught will pay life-changing sums.
Don’t despair, though. There may be a simple way round this. I call it the new IHT five-year rule.
Inheritance tax (IHT) is one of the most hated taxes of all. In a way that’s strange, given that until recently, only 4% or 5% of estates were likely to pay.
I think it’s the principal people don’t like. They’ve been taxed on their income and wealth all their life, only for HMRC to swoop on what’s left when they die.
Especially since that tax is imposed at a punitive 40%.
IHT is likely to become more unpopular still, thanks to chancellor Rachel Reeves. She slapped IHT on farmers, businesses and unused pensions, apparently oblivious of the damage this will do.
Many farmers will no longer be able to pass on their land to children, forcing them to sell to greedy landowners who will plaster them with solar panels rather than grow food.
Privately run businesses will face inheritance tax bills running into tens of millions of pounds, which means their children won’t be able to inherit. Otherwise thriving UK enterprises will get broken up and effectively disappear.
Families also hate the fact that Reeves has slapped IHT on unused defined contribution pensions on death. Incredibly, many families will have to pay both IHT and income tax on the same money.
They will face a combined double death tax charge of up to 67%.
The number of families who pay IHT may soon hit 10%, and those caught will pay life-changing sums.
Don’t despair, though. There may be a simple way round this. I call it the new IHT five-year rule.
Jeremy Clarkson has already hinted at this when tweeting to his 8.1million followers, including disgruntled farmers « shafted » by Labour’s IHT raid.
He wrote: « Please don’t despair. Just look after yourselves for five short years and this shower will be gone. »
And that’s the rule.
Keir Starmer won the general election by a so-called « loveless landslide ». People voted for Labour, but only to get rid of the Tories.
Now they’re suffering a huge case of buyer’s regret, as Starmer and Reeves tax us all to death (and beyond) and tank the economy at the same time.
Incredibly, a petition demanding a fresh election will be debated in Parliament on January 6, after attracting a staggering 2.8 million signatures.
If that’s how people feel after six months, imagine the fury after five long years of this ruling rabble. On current form, Labour faces annihilation at the next election in 2029.
If it lasts that long.
During its term, the idea that we can make the economy grow by taxing it to death will have been tested to destruction. Whoever wins the next election, will have to reverse Labour’s inheritance onslaught.
So all farmers, business owners and families need to do is survive five years to escape Labour’s raid. Let’s just hope their hearts can stand the strain.
Source link
