ACCOUNTANT EXPOSES: HMRC Want Your Inheritance

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  • Опубліковано 5 січ 2025

КОМЕНТАРІ • 154

  • @KiranKaurFinance
    @KiranKaurFinance  4 місяці тому +1

    Check out shortform and get a free trial and 20% discount at shortform.com/kiran

  • @dardog7734
    @dardog7734 4 місяці тому +76

    It’s a joke the way we have to think about money we’ve already been taxed on !

    • @nicholasdickens2801
      @nicholasdickens2801 4 місяці тому +1

      Yes why not tax rich people? The UK tax system is just broken. They screw you every which where.

    • @eddieoconnor8560
      @eddieoconnor8560 4 місяці тому +1

      Absolute tosh. In what way has it already been taxed. Most is on property value appreciation which has not been taxed.

    • @peterwood2633
      @peterwood2633 4 місяці тому

      ​@@eddieoconnor8560lol money earnt has been taxed?!

  • @michaelwhite8031
    @michaelwhite8031 4 місяці тому +41

    It's criminal to have to pay tax on something you have already paid tax on.

    • @hughiemg2
      @hughiemg2 4 місяці тому +1

      Not all of it is taxed. No tax on capital gains on private residence, no tax on private pensions if the person dies before 75

  • @mcc5901
    @mcc5901 4 місяці тому +21

    Inheritance tax is an entirely unnecessary tax. All inheritance is wealth on which tax has already been paid. It is therefore a vulture tax feeding off the remains of the hard earned wealth of a lifetime of sacrificial work, which few if any politician has experienced. That’s the first point. Secondly, some voters believe it will largely affect only those that have been successful and therefore every socialist loves it, because they envy anyone that has done better in life than they have. So, they delusionally believe that such a tax will ‘level the playing field’ and make for a more equitable society. Truth is that it has the entirely opposite effect. You really think the kids of Elon Musk are going to be hard done by due to an inheritance tax? Only the dumb could believe that the inheritance tax is going to largely affect the well off. It conversely affects the less well off in a much greater measure. You have worked hard all your life to get yourself on the property ladder and the least you can leave behind is a helping hand to your children to get on in life but then the government swoops in and walks off with a wad of your wealth for nothing given in return. This keeps the working class down and dependent, which is essential for socialism to survive. It also keeps the next generation dependent on the banks for a hefty mortgage, when zero inheritance tax would have been life changing for many struggling families. And it’s not as if this money will disappear. It will be spent in the economy where it will be surely taxed. The difference here is that it is the individual that will decide on what that money is spent and not a wasteful government that the person probably didn’t even vote for.

  • @nancyhood8395
    @nancyhood8395 4 місяці тому +79

    It's a disgusting tax ,avoided by the super rich

    • @grimsbyhackney479
      @grimsbyhackney479 4 місяці тому +6

      And avoided by everyone else because they don't breach the thresholds. Hence only 4% of estates are subject to it.

    • @PSinghN-gx3em
      @PSinghN-gx3em 4 місяці тому +2

      It’s only avoided by the super rich if they have invested their money into their own trading business’s , that’s under current rules

    • @nancyhood8395
      @nancyhood8395 4 місяці тому +12

      @@PSinghN-gx3em i take it your an a countant ,under current rules Amazon pay 4%,British gas 11% all available at companies House, while employee,under 50k pays 20%UNDER CURRENT RULES ,UNFAIR,IMMORAL, GREED

    • @mostlycloudy1738
      @mostlycloudy1738 4 місяці тому

      ⁠@@PSinghN-gx3emwhy comment if you have no idea what your talking about? The super rich have trusts, I suggest you do more research before posting.

    • @IAmIM2024
      @IAmIM2024 4 місяці тому +4

      Can be avoided by everyone very easily. People just gormless and pay it.

  • @superamario6464
    @superamario6464 4 місяці тому +26

    Bloody awesome video, Kiran. More people need to know about this subject

  • @garywhapples7172
    @garywhapples7172 4 місяці тому +10

    Small family home in south east England is £450,000.
    Reasonable family home (has a driveway) is £650,000.
    So your IHT is £65k if you inherit your family home.

  • @cater4anytink45
    @cater4anytink45 4 місяці тому +17

    Whats really bad is our parents get tax😮ed one last time when their dead on the one thing they worked hardvfor to leave their loved ones... Mean while our government gives money to people who laugh at this country 😢😢😢😢😢

  • @Differentbias
    @Differentbias 4 місяці тому +6

    Thank you for explaining inheritance tax so clearly; you made it easy to grasp a complex topic. If possible, please share any loopholes you notice that the affluent often exploit. Your insights are invaluable!

  • @funkyfragrancelover2979
    @funkyfragrancelover2979 4 місяці тому +12

    Great video, would like to see an updated video based on Labour budget announcement. There are expected to be some big changes to tax rules and thresholds.

  • @OliverTrist
    @OliverTrist 4 місяці тому +26

    Inheritance tax was founded a long time ago because of the concern that some ultra-wealthy families were becoming too powerful, generation on generation. Back then, your estate would have needed to be valued at today’s equivalent of close to £200 million to qualify for the tax.
    But the threshold has not kept pace with inflation since then, and so nowadays, more and more estates are falling into this trap.
    This really should be taught in schools. I’ve known about this tax since I was a child and so it baffles me that so many adults do not understand that it will impact their families.
    There are lots of people who voted for the Labour Party who are going to get a very nasty shock when they see what’s going to happen to either their estates or their inheritance in years to come.
    Imagine you’re a Millennial who was counting on some inheritance money to help you to purchase a home… voting Labour wasn’t such a good idea after all, was it?

    • @flyhi2773
      @flyhi2773 4 місяці тому +6

      All taxes are today for the poor. Take stamp duty. When I was young that was deemed a tax for the rich, I’ve just moved house, and we just couldn’t avoid it. 10 grand just to move house. Plus VAT on estate agents fees. Unreal. Meanwhile Tony Blair avoided 600,000 in stamp duty using an off shore bank account!

    • @cdub5033
      @cdub5033 4 місяці тому +3

      finance & tax is not taught in school for one simple reason. they want everyone to not know the tax rules so that they are all caught out & paying avoidable tax. they especially don’t want people knowing how finance works & how they are robbed by Compound Interest. if schools taught one thing, it should be compound interest & how banks & finance co’s use it to fleece people.

  • @matthewcross8563
    @matthewcross8563 3 місяці тому +1

    The hardest thing for us to cope with when we settled my father-in-law’s IHT bill was just how proud he had been to save and invest for his children and grandchildren throughout his life. He was such a gentle man, and never spent much on himself. He was so proud of what he had achieved for his family and then HMRC took it all and left his life savings account with less than £1000 in it. The government took far more than any of his children ever did. It was just so sad and the only positive is that he wasn’t around to see it happen as it would have destroyed him.

  • @CROSSNSHOOT
    @CROSSNSHOOT 4 місяці тому +23

    Politicians make so much noise about Rich when really they mean middle class! Particularly in America and Europe. Maybe time to wake up and get out

    • @kaushikvsmaniyan
      @kaushikvsmaniyan 4 місяці тому +3

      Spot on

    • @Benzknees
      @Benzknees 4 місяці тому

      Get out where though, when all developed countries are doing similar?

    • @CROSSNSHOOT
      @CROSSNSHOOT 4 місяці тому

      @@Benzknees ‘Developed’ is a fashionable term. I find ‘Developed’ countries to be broke hence the behaviour of their regimes

  • @bertiewooster3326
    @bertiewooster3326 4 місяці тому +23

    Look you lot avoid IHT if your old and grey give it away or spend it...but most of you old folk hang onto it until it's too late...spend it give it away and live for another 7 years just do it

  • @jameswillis8969
    @jameswillis8969 4 місяці тому +17

    Insidious property seizure

  • @whackeryounis
    @whackeryounis 3 місяці тому +1

    a massive gripe i have with the inheritance tax is essentially you miss out on 500k nil rate band if you're single.

  • @Ryan-me9ge
    @Ryan-me9ge 4 місяці тому +8

    It’s death tax not inheritance. If it was inheritance it would be banded by each person who inherited. Currently the government takes its chuck of flesh first then your kids have to split what’s left no matter how many of them there are

  • @netty8960
    @netty8960 4 місяці тому +9

    Disgusting, imagine you lose a loved one and end up having to sell your home to pay inheritance tax.

    • @Starmerispureevil
      @Starmerispureevil 4 місяці тому

      This is what the government want. They want your houses.

    • @DoraS-bm3gd
      @DoraS-bm3gd 4 місяці тому

      What I have to do 😢😢😢😢

  • @jami7772
    @jami7772 4 місяці тому +3

    Also you can gift out of excess/surplus income (not capital) as long as it does not affect your overall standard of living (ie you do not lower your normal spending habits).

  • @Snoozzzzzze
    @Snoozzzzzze 4 місяці тому +3

    The Labour politician had the nerve to say that increasing IHT is ‘effective wealth redistribution’. Yep, redistribution from families to the government. 🤬

  • @k3lray841
    @k3lray841 4 місяці тому +2

    I see why shopping centres, restaurants & holidays are full up, people rather spend it now.

  • @Danxr-k4j
    @Danxr-k4j 4 місяці тому +8

    Love this, but I think Labour are looking at all these rules and will make changes. So the super rich will just leave the uk and us “working people” will have to pick up the bill. Typical Labour

  • @petruflorintofoleanu5865
    @petruflorintofoleanu5865 4 місяці тому +7

    PUT YOUR HOUSE IN TRUST IS SUBJECT TO TAX INHERITANCE?

  • @Kv9UyjRJ
    @Kv9UyjRJ 4 місяці тому +2

    Thank you so much for providing another great video 🙏

  • @bonditltd5346
    @bonditltd5346 4 місяці тому +3

    People can have a limited company and have A & B shares, so when the A shares dies, the B shares take over control and shares earnings. Houses, rentals, investments etc can be bought in the company, perhaps using a mortgage on their house ( which reduces the equity value) , so reduces the tax bill potentially.

    • @PSinghN-gx3em
      @PSinghN-gx3em 4 місяці тому +1

      The limited company has to be a trading business, property investment Ltd are unlikely to be treated as a trading business.
      If you take a mortgage on your main residence and use the money to put into your limited company, the limited company will owe you the money via a directors loan, if you try to write the loan off it will be a receipt of income for corporations tax
      So taking a loan will only benifit for iht saving if you are gifting the equivalent amount outright and you survive 7 years

    • @bonditltd5346
      @bonditltd5346 4 місяці тому +1

      @@PSinghN-gx3em yes, a trading company, not a con. So property development, short or long term rentals . The director loan to be recouped from future products and not written off.

  • @DreamYourselfAway79
    @DreamYourselfAway79 3 місяці тому

    Thank you so much for this informative and easy-to-understand tutorial.

  • @trebm
    @trebm 4 місяці тому +2

    Thank you for the information, can't believe this isn't more known!

  • @johnsmith-bb1cl
    @johnsmith-bb1cl 4 місяці тому +2

    Also it's due with interest from 30 days after you die not from when the property is sold

    • @stone678
      @stone678 3 місяці тому +1

      My god there evil evil

  • @amourmtungo623
    @amourmtungo623 4 місяці тому +2

    Shukriya Kiran great work as usual 🤝

  • @philipwood123
    @philipwood123 4 місяці тому +1

    Hi. Good video. Re gifts you did not mention some gifts will be subject the CGT (rental house for example) and the pension is only IHT to 75 years old then inheritors marginal rate is applied upon inheriting.

  • @rinakaur7245
    @rinakaur7245 4 місяці тому +3

    Surprised to learn that you can gift your house to children but can't continue to live in it......where you supposed to go if you already cohabit with children.

  • @Benzknees
    @Benzknees 4 місяці тому

    If you gift a house, and continue to live in it as a rental, paying a peppercorn rent to your beneficiaries, would that circumvent the 'with reservation' rule?

  • @wilkopiano
    @wilkopiano 4 місяці тому +1

    Most dont have 325,000 of assets but by 2028 alot more will have. The progressive threshold should be regularly reviewed and ratcheted.

  • @japanluv
    @japanluv 4 місяці тому +2

    Can you cover please taxes for forex/futures traders especially when you trade other peoples money such as prop firms. Thank you.

  • @SuseFishUK
    @SuseFishUK 3 місяці тому

    A really useful and clearly presented video, thank you very much

  • @googleuser795
    @googleuser795 4 місяці тому +1

    And the rate 40% a joke not to mention paying the tax on vastly inflated values, imagine paying 100k tax on a inherited semi detached in the south East, could happen

  • @Sartorialpirate
    @Sartorialpirate 4 місяці тому

    What if she entered into a joint tenancy with two of her children? On her passing the surviving owners would take ownership without the need for probate.

  • @hiccup36
    @hiccup36 4 місяці тому +1

    What about setting up a trust?

  • @marcorossi-tl6cb
    @marcorossi-tl6cb 4 місяці тому +1

    hello kiran, what about using a trust to avoid iht , rather than gifting , can you do a video about the use of trust for this thank you.

  • @Tony-qw2mo
    @Tony-qw2mo 4 місяці тому +1

    Correct me if I'm wrong but during the great fire of London didn't the government pass a bill through Parliament deeming everyone in the country dead allowing them the right to your estate or inheritance giving individuals 7 years from birth to claim their said inheritance or estate back?

  • @markcrabtree6793
    @markcrabtree6793 4 місяці тому

    I’m just about to start this process unfortunately. I’ve been looking into it, but seems a bit of a minefield. Don’t want the solicitors taking a chunk to do it. Already tested there will be no tax to pay (as in the video, up to £1M). Can you point me in the direction of a straight forward tick sheet approach. TIA.

  • @MarcLiron
    @MarcLiron 4 місяці тому +4

    My wife and I never had children so this means NO extra allowance? This is a con!!!

    • @egg399.
      @egg399. 4 місяці тому +1

      You can adopt me!

    • @stone678
      @stone678 3 місяці тому +1

      ​@@egg399.Lol lol your a star love it

  • @qed456
    @qed456 4 місяці тому +1

    covering the only two things certain in life - death and taxation

  • @helenmeopham8158
    @helenmeopham8158 4 місяці тому +2

    Isn’t there an annual cash gift allowance?

    • @AJ-kb9hf
      @AJ-kb9hf 4 місяці тому

      Yes, it's £3000 and an unused allowance can be carried forward for 1 year only. You can also gift £250 to as many people as you want but not to the ones who have received £3000 (or part of it).

  • @kclim2631
    @kclim2631 3 місяці тому

    I want to avoid inheritance tax altogether by transferring my assets to my wife when I die. She will then distribute my assets as I pre-specified to her - by gifting money to wider family. I trust her. Because she is 5 years younger than me, and she is from "long life genes", I expect her to live more than 7 years after I died, hence when she made the gift (upon my death) on my behalf, by the time she dies, the gifts/inheritance to my wide family will be tax free. QUESTION IS:- How do I transfer my assets to my wife? Do I simply write/make a will to that effect?....or is there a legal procedure/process. Wjat advice much appreciated.

  • @wildgeeseod67
    @wildgeeseod67 4 місяці тому

    Thanks. What about putting assets into a trust?

  • @rajjai
    @rajjai 4 місяці тому

    Thanks! What about the 7 year period regarding gifting? Would love to hear your insight on that

  • @ssbN77
    @ssbN77 4 місяці тому

    I'm on the title deeds of my parents house, will i be still hit with inheritance tax?

  • @davidc4408
    @davidc4408 4 місяці тому

    Easy way to resolve is change residency if UK based. I have Dubai and a few other ways to avoid it

    • @PSinghN-gx3em
      @PSinghN-gx3em 4 місяці тому

      Uk Iht is on world wide assets, one needs to ensure that all links are totally severed with the uk, this then can mean that your domicile is changed, if you maintain a uk domicile even if you live abroad , iht will still apply , also have to ensure that when one dies, the funeral and burial is also not in the uk

    • @davidc4408
      @davidc4408 4 місяці тому

      @@PSinghN-gx3em pass assets 7 years before death

  • @Jaques2go
    @Jaques2go 4 місяці тому

    What about rental properties left to children & grandchildren please?

    • @stone678
      @stone678 3 місяці тому +1

      Values added together if you only have them its 325 kept any value over is taxed at 40 percent but if your own house has used the 325 amount the government gets to tax you at 40 percent all gets complicated if it's going to wife first but if you have houses get a tax account ant on it now

  • @DE51B0Y
    @DE51B0Y 4 місяці тому +1

    Waheguru 🙏

  • @OneAndOnlyMe
    @OneAndOnlyMe 4 місяці тому

    Can pensions only passed tax free to children who are direct descents, or can that include nephews and nieces?

    • @PSinghN-gx3em
      @PSinghN-gx3em 4 місяці тому

      This only applies to money purchase pensions, they can be passed to anyone, does not have to be family - need to have an expression of wish in place with the pension provider, under current rules the money purchase pension plan is exempt from iht whoever it’s left to

    • @hughiemg2
      @hughiemg2 4 місяці тому

      ​@@PSinghN-gx3em I believe it's only fully tax exempt if the person dies before the age of 75. If over 75 the person inheriting the pension needs to pay income tax on it at their appropriate rate.

  • @jasminehasan890
    @jasminehasan890 4 місяці тому +4

    Ultimately inheritance will be abolished. “You will own nothing and be happy “

  • @rolandasliutikas1078
    @rolandasliutikas1078 4 місяці тому

    But if on that property of 1minl value is mortgage of £850 what happens..

    • @pritamrp
      @pritamrp 4 місяці тому +1

      Then £150 is the asset value, which will be subject to iht

    • @AJ-kb9hf
      @AJ-kb9hf 4 місяці тому

      The value of the mortgage at the date of death is deducted (as a liability) so the net value of the house would be £150k as at the date of death - which is the relevant valuation for IHT purposes.

  • @paulfairbairn1066
    @paulfairbairn1066 4 місяці тому

    Do i understand correctly that if you're a millionaire and own a farm, you are not liable for IHT when you die?

    • @hughiemg2
      @hughiemg2 4 місяці тому

      No inheritance tax on agricultural land. It's another way the wealthy get away with not paying as they hoover up land to avoid paying iht when they die. It's hurting young farmers as it's driving up the cost of land

  • @jimbandit1250sa
    @jimbandit1250sa 4 місяці тому +1

    Wow thanks so much for this superb advice so basically you work hard all your life pay Tax on your earnings, and savings and your pension, then pay again when you die, wow this government are so cool🤨☺️😬 I think I may move to a country that’s less taxable ☺️

  • @williambraganzahanna950
    @williambraganzahanna950 4 місяці тому +1

    Live as a nomad,save money in physical Gold.

  • @gavinspiby8304
    @gavinspiby8304 4 місяці тому +3

    I’m pretty sure I heard Labour will reduce the limit to 125k let’s hope I’m wrong!
    Also they will do away with gifting the 7 yr rule !

  • @clam4597
    @clam4597 4 місяці тому

    What if you leave the country?

  • @PattayaBars
    @PattayaBars 4 місяці тому

    Great video.

  • @SylwZ-mm8fc
    @SylwZ-mm8fc 4 місяці тому

    So what happens when you live with someone for many years, but are not married to?

    • @AJ-kb9hf
      @AJ-kb9hf 4 місяці тому +1

      If you leave your assets to them them then provided you have not used by the tax free allowance of £325k (called the Nil Rate Band - NRB) then this amount would be deducted from net assets and the rest would be subjected to IHT at 40%. (It is worth getting married to utilise spousal exemption.)

  • @patrickthomas1273
    @patrickthomas1273 4 місяці тому

    As Sammy Davis junior said it's better dying owing a million than leaving a million

  • @glostergloster6945
    @glostergloster6945 4 місяці тому

    Social Care is a much bigger inheritance tax and one that noone wants to think about paying. Current going rate for a care home is £6000 per month. Its a far bigger liability for most people than IHT.

  • @mrwpg
    @mrwpg 4 місяці тому

    simple solution, keep your savings in precious metals and enable direct access to stocks and shares and your bank account... then just leave a letter to your family and pass on the details...

  • @kashgb5456
    @kashgb5456 4 місяці тому

    I got 2 Question-
    can i borrow money from direct loan lenders can i invest in crypto?
    2- if get credit card & withdraw the money from ATM machine & deposited into my personal bank account to invest in crypto am i break any rules?
    If so can my money be seized?

  • @sueievers8700
    @sueievers8700 4 місяці тому

    You don’t mention the rules about leaving money to charities.

  • @hughiemg2
    @hughiemg2 4 місяці тому

    I have no problem with the concept of inheritance tax. My problem with it is that the rate is too high and there are too many loopholes so that the wealthy dont actually enf up paying it. Drop the rate to 20%, raise the threshold and close all the bullsh1t loopholes

  • @rinakaur7245
    @rinakaur7245 4 місяці тому

    Very informative.

  • @AR-fy2qo
    @AR-fy2qo 4 місяці тому +1

    Subscribed

  • @CristianBunescu
    @CristianBunescu 4 місяці тому

    Are you related to Prea Kaur, Paul Preston's assistant?

    • @stevenrix7024
      @stevenrix7024 4 місяці тому

      Kaur is a fairly common Indian surname, especially for Sikhs apparently.

  • @User-ty2ml
    @User-ty2ml 3 місяці тому +1

    Why ? Why do you Kill Mr. Smith.
    Mrs. Smith may die first !!!

  • @dhfozzie
    @dhfozzie 4 місяці тому

    Few mistakes in presentation but broadly correct

  • @Rapid_GT
    @Rapid_GT 4 місяці тому

    An off topic comment from this serious topic - 😍 I'll get me coat..

  • @grimsbyhackney479
    @grimsbyhackney479 4 місяці тому +2

    Awesome. I wish I was one of "The Smith's" two kids. £800,000 of unearned wealth!!! Full result. Kerching!!!!!

    • @TheRaz181
      @TheRaz181 4 місяці тому +1

      Unearned? Ever heard of family values?
      The queen left anything to her kid Charles? Or did the royal family just end up making their name and wealth independently from their royal inheritance? AfTER tax, what I do with my assets is my god damn business. Free country my ass

  • @antondp74
    @antondp74 4 місяці тому

    It’s pure extortion, but the real criminals that enforce it certainly do not pay it. Funny that eh!?

  • @kaikai2469
    @kaikai2469 4 місяці тому

    Hello.
    How is pension paid out to beneficiaries? Is this via a cash lump sum?
    What happens to your state pension when you die? Can you spouse/children inherit it?

    • @melaniepemberton2882
      @melaniepemberton2882 4 місяці тому

      No, the state pension dies with the person claiming it.😢

  • @baits9301
    @baits9301 4 місяці тому

    They tax you when you die as well .

  • @volt8684
    @volt8684 4 місяці тому

    Gut Fawkes requires

  • @MarkPayne-k7l
    @MarkPayne-k7l 3 місяці тому

    What is wrong with the state taxing unearned income?i If inheritors are so desperate for cash, why don't they work for it like so many people have to do? In fact the latter have to work harder still to stay alive because some people think that they are entitled to free money.

  • @christianyellic3394
    @christianyellic3394 4 місяці тому

    Blair is the reason.

  • @DeWo-m6q
    @DeWo-m6q 4 місяці тому

    It’s criminal to have a lot of very poor people in society and then a handful of very rich people. Please pay your taxes if you want to have a society fit for your kids to actually live in. Tax avoidance and reduction is basically kicking poor people in the head and blaming them for making you do that. Punch up … to the super rich. If a few billionaires paid even 1% tax we could get rid of income, vat, road, fuel tax etc.
    or you can penny-pinch, save all your money to give to your kids and they won’t have any public services to speak of.

  • @manmeet4981
    @manmeet4981 Місяць тому

    Why don't you use punjabi accent.

  • @zaydmauthoor
    @zaydmauthoor 4 місяці тому +1

    You will own nothing and be happy...

  • @Dom-De
    @Dom-De 4 місяці тому

    Only the super-wealthy dislike inheritance tax. The fact your spouse don't get taxed, and even if it's passed to children, the first £350,000 is tax-free should tell you everything. Any child complaining about getting £350,000 tax-free, but then being taxed for money above that is clearly so wealthy & greedy that they show no social community.

    • @Lorraine-p4r
      @Lorraine-p4r 3 місяці тому +2

      You would not like inheritance tax
      If you were single. You had a single uncle with no children and grandchildren. Who left it to his nieces, nephews, sister, friends!
      We received years ago very small amounts each.
      After £75,000 inheritance tax was paid
      First!!! There is discrimination against
      Single persons. My uncle was not rich.
      He just had one bungalow!!! Some
      savings.