The Politics Thread

[Worthy4England]

It naty be true in a very small number of cases - but I do not really believe that the people who own £2million houses have achieved that simply by "hard work" as is often claimed.

I used to work in an aluminium foundry - I was fortunate to only have to do it for a year - and it was never going to be a lifetime's work for me.

now - that was fecking hard work - and hot and dirty - and dangerous - and I will wager that NONE of those I worked with back then are currently living in houses worth £2million - nor will they ever, however "hard" they work.

so - the "we live in this house because we have earned it" doesn't really wash (in my opinion) - there are 100 other factors to do with privilege that are also involved - and because of that - I think it is entirely fair that such unearned privilege is taxed for the benefit of those who wedre not so fortunate as to have such unearned privilege land in their laps.

Different discussion.

If that's your view, you need to introduce a privilege tax, not a property one.

[thebish]

It naty be true in a very small number of cases - but I do not really believe that the people who own £2million houses have achieved that simply by "hard work" as is often claimed.

I used to work in an aluminium foundry - I was fortunate to only have to do it for a year - and it was never going to be a lifetime's work for me.

now - that was fecking hard work - and hot and dirty - and dangerous - and I will wager that NONE of those I worked with back then are currently living in houses worth £2million - nor will they ever, however "hard" they work.

so - the "we live in this house because we have earned it" doesn't really wash (in my opinion) - there are 100 other factors to do with privilege that are also involved - and because of that - I think it is entirely fair that such unearned privilege is taxed for the benefit of those who wedre not so fortunate as to have such unearned privilege land in their laps.

Different discussion.

If that's your view, you need to introduce a privilege tax, not a property one.

I'm just trying to explain why it is that I don't have the instinctive and gutteral, outraged "It's not fair!" response to Inheritance tax that Mummy has.

[Worthy4England]

It naty be true in a very small number of cases - but I do not really believe that the people who own £2million houses have achieved that simply by "hard work" as is often claimed.

I used to work in an aluminium foundry - I was fortunate to only have to do it for a year - and it was never going to be a lifetime's work for me.

now - that was fecking hard work - and hot and dirty - and dangerous - and I will wager that NONE of those I worked with back then are currently living in houses worth £2million - nor will they ever, however "hard" they work.

so - the "we live in this house because we have earned it" doesn't really wash (in my opinion) - there are 100 other factors to do with privilege that are also involved - and because of that - I think it is entirely fair that such unearned privilege is taxed for the benefit of those who wedre not so fortunate as to have such unearned privilege land in their laps.

Different discussion.

If that's your view, you need to introduce a privilege tax, not a property one.

I'm just trying to explain why it is that I don't have the instinctive and gutteral, outraged "It's not fair!" response to Inheritance tax that Mummy has.

Maybe mummy's daddy's house is worth £2m.

[CAPSLOCK]

I own my parents house

Their choice, not mine

And when they die, the thieving politicians can fcuk right off

[Worthy4England]

I own my parents house

Their choice, not mine

And when they die, the thieving politicians can fcuk right off

I have that T-Shirt....

[mummywhycantieatcrayons]

Maybe mummy's daddy's house is worth £2m.

I'm on a train without access to a proper keyboard, but I can confirm that the Crayons family home is not worth enough to benefit from the higher IHT threshold!

[TANGODANCER]

Maybe mummy's daddy's house is worth £2m.

I'm on a train without access to a proper keyboard, but I can confirm that the Crayons family home is not worth enough to benefit from the higher IHT threshold!

Have you checked? House prices have just risen by 10%. (just joking)

[mummywhycantieatcrayons]

I own my parents house

Their choice, not mine

And when they die, the thieving politicians can fcuk right off

I have that T-Shirt....

just out of interest - what do you both do to make sure you actually own the houses for tax purposes? Do your parents still live in their homes, and if they do, do they pay you rent at the market rate?

[Athers]

I own my parents house

Their choice, not mine

And when they die, the thieving politicians can fcuk right off

My family know a multi-millionaire who put nearly everything he had into his son's name early to try and avoid IHT, only for the poor son to die first and they had to pay big IHT to get it back. Harsh

[Worthy4England]

I own my parents house

Their choice, not mine

And when they die, the thieving politicians can fcuk right off

I have that T-Shirt....

just out of interest - what do you both do to make sure you actually own the houses for tax purposes? Do your parents still live in their homes, and if they do, do they pay you rent at the market rate?

I suspect the rules around gains have changed somewhat substantially since I did it. CAPS may well have a more recent view.

[Lord Kangana]

I own my parents house

Their choice, not mine

And when they die, the thieving politicians can fcuk right off

I have that T-Shirt....

just out of interest - what do you both do to make sure you actually own the houses for tax purposes? Do your parents still live in their homes, and if they do, do they pay you rent at the market rate?

On this point anyone who does this should be careful, as the non payment of rent can be seen as a Benefit in Kind by your parents. I'm sure the advice of relevant solicitors and accountants has been sought, but its worth bearing in mind, as you can end up facing a hefty bill. I believe the remedy is a peppercorn rent that can be returned through cash, just needs to be a record of payment. Which you'll then have to declare as income to the taxman.*

*This doesn't constitute finanacila advice and real advice should be sought blah blah blah.

[Worthy4England]

I own my parents house

Their choice, not mine

And when they die, the thieving politicians can fcuk right off

I have that T-Shirt....

just out of interest - what do you both do to make sure you actually own the houses for tax purposes? Do your parents still live in their homes, and if they do, do they pay you rent at the market rate?

On this point anyone who does this should be careful, as the non payment of rent can be seen as a Benefit in Kind by your parents. I'm sure the advice of relevant solicitors and accountants has been sought, but its worth bearing in mind, as you can end up facing a hefty bill. I believe the remedy is a peppercorn rent that can be returned through cash, just needs to be a record of payment. Which you'll then have to declare as income to the taxman.*

*This doesn't constitute finanacila advice and real advice should be sought blah blah blah.

Not sure it's about "rent". They can remain "rent" free.

It used to be about whether anyone had made a capital gain...

[Lord Kangana]

The most recent advice a friend of mine received was just that. If they are living in a house and paying nowt to do so, there is a benefit. I think this is because if they were to be paying rent it would become a taxable income for someone else. As I say, people get payed money to be good at this sort of thing, its worth speaking to one of them.

[CAPSLOCK]

All the 'stuff' was done years back

My Grandma was a widowed 'businesswoman'

She had a 'bread shop'

When retired, she lived alone in a modest semi-detached bungalow

She got old/ill and couldn't care for herself

My mum n dad both HAD to work, my dad doing 12 hour shifts, so my Nan had to go in a home

House had to be sold to pay for her care - fair does, I suppose people ill say...why she had to pay when pisscans and drop outs did not, is not fair does

Trust me, that's not happening again

[Worthy4England]

All the 'stuff' was done years back

My Grandma was a widowed 'businesswoman'

She had a 'bread shop'

When retired, she lived alone in a modest semi-detached bungalow

She got old/ill and couldn't care for herself

My mum n dad both HAD to work, my dad doing 12 hour shifts, so my Nan had to go in a home

House had to be sold to pay for her care - fair does, I suppose people ill say...why she had to pay when pisscans and drop outs did not, is not fair does

Trust me, that's not happening again

No I'm with you on that one CAPS - it's not fair do's, it's fecking ridiculous.

[mummywhycantieatcrayons]

The most recent advice a friend of mine received was just that. If they are living in a house and paying nowt to do so, there is a benefit. I think this is because if they were to be paying rent it would become a taxable income for someone else. As I say, people get payed money to be good at this sort of thing, its worth speaking to one of them.

Your info on this is spot on and is what underpins my question.

[TANGODANCER]

The most recent advice a friend of mine received was just that. If they are living in a house and paying nowt to do so, there is a benefit. I think this is because if they were to be paying rent it would become a taxable income for someone else. As I say, people get payed money to be good at this sort of thing, its worth speaking to one of them.

Your info on this is spot on and is what underpins my question.

Where the fxxk did that expression come from except in building foundations? We used to just say reinforces or supports.

[thebish]

The most recent advice a friend of mine received was just that. If they are living in a house and paying nowt to do so, there is a benefit. I think this is because if they were to be paying rent it would become a taxable income for someone else. As I say, people get payed money to be good at this sort of thing, its worth speaking to one of them.

Your info on this is spot on and is what underpins my question.

Where the fxxk did that expression come from except in building foundations? We used to just say reinforces or supports.

get yourself a thesaurus Tango - it'll enrich your language usage!

[Worthy4England]

The most recent advice a friend of mine received was just that. If they are living in a house and paying nowt to do so, there is a benefit. I think this is because if they were to be paying rent it would become a taxable income for someone else. As I say, people get payed money to be good at this sort of thing, its worth speaking to one of them.

Your info on this is spot on and is what underpins my question.

There are two elements to the liability to pay tax (of one sort or another). One is the capital gains element, the other is around ongoing benefit and income tax.

Transferring the property at zero consideration, would potentially be liable for a Capital Gains Payments or IHT - one way round this used to be to transfer it in stages under the CGT threshold (but that takes some time) as it has to be done in annual stages under the GCT threshold. This used to effectively avoid the CGT element that would be due (assuming the whole value of the property was transferred before they died). I think this is still potentially open as an avenue to explore.

It is not a benefit in kind. Benefits in kind are those received by an employee from an employer. It's not a benefit to you as the lessor, so carries no Tax implications (I think the taz implication sits with the transferor). It could have implications if parents were claiming state benefits of any kind, that were income related and required the free rent benefit to be factored in. It would under fairly recent legislation (in the even that it had been gifted) be subject to POAT (Pre-Owned Asset Tax) which was specifically designed to stop free gifts of houses to children (and/or free gifts of the money or other assets to pay for the house to children) and thus avoid IHT.

I think there are probably still some loopholes, but it would require careful research and planning.

http://www.guardian.co.uk/money/2010/ap ... le-for-tax

http://www.telegraph.co.uk/property/pro ... s-Tax.html

http://www.telegraph.co.uk/property/pro ... perty.html

[H. Pedersen]

This is making my head hurt and removing all desire to ever own a home.

Though Seattle housing prices helped with that a long time ago . . .