Inheritance Tax

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ovverbruv

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From bbc.co.uk

Fresh appeal in sisters' tax case

The Burden sisters have been fighting their case for years
Two elderly sisters are to mount a last legal challenge to enjoy the same tax rights as married and gay couples.
Joyce and Sybil Burden, born in 1918 and 1925, have lived together in Marlborough all their lives.

Last year, they lost their battle for equal rights at the European Court of Human Rights, and now plan to appeal.

The sisters have willed their house to each other, but if one dies the other faces a large inheritance tax bill and may have to sell their shared home.

Judges will hear the appeal on Wednesday, with a decision due later this year.

'Giving security'

The sisters argue that the UK Civil Partnership Act of 2004 breaches the European Convention on Human Rights.

The act allowed same sex couples the same rights as married heterosexual couples.

But the benefits, including passing property tax-free between partners, do not extend to co-habiting family members.

Their solicitor, Elizabeth Gedye ,said they believed they deserved the same rights as such couples.

"They believe they should have the same rights because they feel that they've demonstrated a relationship that is as committed as any marriage, and maybe more so, and as committed as those that are in civil partnerships," she said.

"Their hope is that they will get an exemption so that on the first of them to die, no inheritance tax will be paid, thus making a significant saving and giving the second some security."

The spinsters have written to the Chancellor of the day before every Budget since 1976 seeking exemption from inheritance tax for family members.

Is it just me or is their case really strong in principle, I understand that the exemption for civil partnerships was necessary but surely this case highlights a gap in the law. I wish them the best of luck
 
Their plight mirrors that of many normal people (including children living with parents because they cannot afford to buy or rent their own property) who are hammered by this tax that was designed to hit the rich because successive Governments have refused to link its thresholds to the increasing cost of property in the UK.

Obviously the easiest solution would be to scrap the tex entirely (and maybe start getting gypsies to pay raod tax to cover the shortfall?)

Realistically though they should raise the threshold so that fewer everyday people are affected by this tax regardless of whether they are married, gay, lesbians or sisters.
 
If Desperate Dan is around he may help. I was wondering if they could sell the home to the bank on one of those wrinkly capital release schemes and put the money in a joint account so that it survives them. Probably a shite idea, but they don't seem to have anybody to bequest to.
 
There are ways and means of getting around it apparently but they can be long winded & most of them depend on the original owner living at least another 7 years, I believe. It is something we're looking into as if Dad shuffles off myself & my brother will have to come up with 6 figure amounts of cash for Big Gordon & his cronies.
 
Not so easy, I`m afraid an. It should be remembered, though, that the threshold is £300k,,,not a bad sum to inherit tax-free and for doing nowt except being an accident of birth. Incidentally, the Tories have NOT said they will abolish it although the Daily Mail may insist.
 
Try googling "inheritance tax abolished "and see if the Daily Mail comes up Desperate. They don't. I have the 3 stooges following me about rubbishing my posts just like the old days again que Bar the Bull, Desperate Dan and An Capall.

Yawn... yawn.... yawn!!!!

From the BBC for anyone interested:
Axe inheritance tax, Tories urged

Rising house prices are hitting too many people, the group says
Redwood on tax
A Conservative government should abolish inheritance tax because it penalises too many middle-income families, a policy group recommends.
It says rising property prices mean that estates of those "who could not in any sense be described as rich" are now above the £300,000 payment threshold.

Shadow chancellor George Osborne said he would look very closely at the idea.

But Chancellor Alistair Darling said it would mean a "lurch to the right" if the Tories adopted the policy.

The report also calls for business tax cuts to make the economy more competitive.

'Not popular'

Led by former Cabinet minister John Redwood, the Competitive Challenge working group says the government has introduced many "stealth taxes" since Labour came to power 10 years ago.

Its report, which is not binding on the party, says: "Inheritance tax is not a popular tax.

"This has become even more true as the swift rise of house prices in much of the country has resulted in many people, who could not in any sense be described as rich, suddenly finding that their family will be liable to pay quite substantial amounts upon their estate.

"We recommend the abolition of inheritance tax."

Estates worth up to £300,000 are exempt from inheritance tax. Any value after that is taxed at 40%.

'Proceeds of growth'

No inheritance tax is currently payable on 94% of estates, according to official figures.

The £300,000 threshold is due to increase to £350,000 by 2010, which the government says will ensure this remains the case.


Mr Osborne has promised to make economic stability the priority

Mr Redwood told BBC Radio 4's Today programme his proposals would not require cuts in public services because they would help the economy grow.

He said: "They're paid for out of the proceeds of growth."

Mr Redwood added: "The shadow chancellor's rightly said he will share that money. Some of that money should go to improve public services and some of it can go to tax reductions."

Mr Osborne described the report as "the most impressive and comprehensive analysis of the state of the British economy produced by any political party in recent times."

But while he said that he would look "very carefully" at the proposals, he said that there could be no commitment to specific tax cuts unless they could be fully afforded.
 
Can't be bothered to read large bits of cut'n'paste, suffice to say that the Tories won't do anything about it either. Nor will they abolish the ban on fox hunting, clamp down on gun crime, gypsies occupying public land, or kids getting smashed on WKD and getting pregnant at 13 years old.

Still it leaves plenty for us to moan about !
 
Nowhere in that article does it mention the Tories will abolish it. The Daily Mail did say they will abolish it because I read it (internet searches notwithstanding).
 
I don't often read the Daily Mail FU, so only can go on what other websites and papers have suggested.
 
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