Inheritance Tax
Posted by: jasons on 04 June 2006
WTF?????
Its not enough that tax has already been paid on the original source of the money, but then they want another 40% of it when its passed on!!!!!
What the hell is wrong with the damn government?
And they still manage to waste it.
It makes me seethe with anger..
Its not enough that tax has already been paid on the original source of the money, but then they want another 40% of it when its passed on!!!!!
What the hell is wrong with the damn government?
And they still manage to waste it.
It makes me seethe with anger..
Posted on: 10 June 2006 by Bob McC
How do the recipients deal with the bequest money after withdrawal? Unless they keep it in cash under the bed they'll have awkward questions to answer if they come to deposit it anywhere else. Furthermore surely this is an illegal tax avoidance scheme so what professional would be prepared to set it up?
Posted on: 10 June 2006 by Fraser Hadden
Bob,
(1) It is not difficult to denude an account over a year or so unless the account is vast. In the latter instance, the beneficiary would simply open a number of accounts in their own name, perhaps across several national boundaries, and distribute their bequest among these. Thus £200K could become 10 lots of £20K. No institution will query an initial deposit of this scale.
(2) It is plainly illegal. I simply asked whether anyone could see holes in it in practical terms. Any mentally competent person can be an executor so there is no call on a 'professional' to set it up.
Fraser
(1) It is not difficult to denude an account over a year or so unless the account is vast. In the latter instance, the beneficiary would simply open a number of accounts in their own name, perhaps across several national boundaries, and distribute their bequest among these. Thus £200K could become 10 lots of £20K. No institution will query an initial deposit of this scale.
(2) It is plainly illegal. I simply asked whether anyone could see holes in it in practical terms. Any mentally competent person can be an executor so there is no call on a 'professional' to set it up.
Fraser
Posted on: 10 June 2006 by Bob McC
Fraser
You can't just hide money in bank accounts in europe. To open a European bank account you now have to provide your UK Nat. Insurance number to facilitate cross europe tax checks. (at least I did)
I also doubt if you could open a bank account in the UK today with 20K or more without having to answer questions about where it came from. (at least I did)
Does anyone know if copies of wills that go to probate are sent to HM Customs and Revenue?
You can't just hide money in bank accounts in europe. To open a European bank account you now have to provide your UK Nat. Insurance number to facilitate cross europe tax checks. (at least I did)
I also doubt if you could open a bank account in the UK today with 20K or more without having to answer questions about where it came from. (at least I did)
Does anyone know if copies of wills that go to probate are sent to HM Customs and Revenue?
Posted on: 10 June 2006 by Fraser Hadden
Bob,
Once the beneficiary has the money from the deceased, I am proposing that they open the receivng accounts in their own name so there is no problem furnishing addresses, NI numbers etc.
My mother has frequently (legitimately) shunted amounts of £30K from account to account since my father's death in an attempt to maximise interest returns. She has never been questioned. She just fills in a form and writes a cheque for the opening balance.
Fraser
Once the beneficiary has the money from the deceased, I am proposing that they open the receivng accounts in their own name so there is no problem furnishing addresses, NI numbers etc.
My mother has frequently (legitimately) shunted amounts of £30K from account to account since my father's death in an attempt to maximise interest returns. She has never been questioned. She just fills in a form and writes a cheque for the opening balance.
Fraser
Posted on: 10 June 2006 by Bob McC
I said open an account not move from account to account.
I also believe the answer to my previous question is yes, leading to all sorts of questions from the revenue.
You can only give away a limited amount in any 1 year anyway without incurring tax if the estate is large enough to incur it..
I also believe the answer to my previous question is yes, leading to all sorts of questions from the revenue.
You can only give away a limited amount in any 1 year anyway without incurring tax if the estate is large enough to incur it..
Posted on: 10 June 2006 by Bob McC
I believe this covers it.
The first steps to be taken by the proposed executor of a will involves assessment of all debts and liabilities and valuation of all assets including bank accounts and real property Once this has been carried out a proposed executor in person must make application to the local registry for a grant and at that time must submit an account showing all assets and liabilities for consideration by the capital taxes office as there may be liability to pay tax on the estate if the net value exceeds current limits. The proposed executor is then called to the registry and is required to swear an affidavit which contains basic details of the deceased and the death together with a figure for the net value of the estate. The original will must be annexed to this affidavit. The application is then considered by the registry which issues the grant. In due course the capital taxes office will consider the executors account and may ask further questions before indicating that they are satisfied with the figures. If the value of the estate exceeds the current limit then tax will be payable and if in due course the figures change following liquidation of the assets then it may be necessary to submit an amended account.
The first steps to be taken by the proposed executor of a will involves assessment of all debts and liabilities and valuation of all assets including bank accounts and real property Once this has been carried out a proposed executor in person must make application to the local registry for a grant and at that time must submit an account showing all assets and liabilities for consideration by the capital taxes office as there may be liability to pay tax on the estate if the net value exceeds current limits. The proposed executor is then called to the registry and is required to swear an affidavit which contains basic details of the deceased and the death together with a figure for the net value of the estate. The original will must be annexed to this affidavit. The application is then considered by the registry which issues the grant. In due course the capital taxes office will consider the executors account and may ask further questions before indicating that they are satisfied with the figures. If the value of the estate exceeds the current limit then tax will be payable and if in due course the figures change following liquidation of the assets then it may be necessary to submit an amended account.
Posted on: 11 June 2006 by living in lancs yearning for yorks
I'm not sure that the "it's already been taxed so why should it be taxed again" argument makes sense. When I buy clothes, a car, petrol, meals out, hifi, insurance, holidays etc etc that comes from taxed income - but I have to pay VAT (or other direct taxes) on all of it...
Inheritance tax is about redistribution of wealth - it's not desirable (well, in my view anyway - the selfish will disagree) that one part of society should be able to accumulate more and more and more wealth
It is daft that it is essentially a voluntary tax (as such it probably redistributes wealth to accountants and lawyers more than the needy!), and I would certainly question whether this govt is capable of spending wisely...
Inheritance tax is about redistribution of wealth - it's not desirable (well, in my view anyway - the selfish will disagree) that one part of society should be able to accumulate more and more and more wealth
It is daft that it is essentially a voluntary tax (as such it probably redistributes wealth to accountants and lawyers more than the needy!), and I would certainly question whether this govt is capable of spending wisely...