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Thread: Draconian Inheritance Tax

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    Default Draconian Inheritance Tax

    I predict inheritance tax changes to be the headliner in the forthcoming budget.

    The current threshold of €441k is now too high as house prices have dropped a good 30% with a lot more to go. The inheritance tax regime needs to change dramatically in order to reflect the dramatic changes in the property market.

    I expect the inheritance tax rate to be brought back to 1990s levels and the threshold reduced.

    €300k to €400k threshold and 30% to 40% tax is what I'm forecasting.

    Side note: if the government think they'll get away with screwing the PAYE worker whilst leaving open all the tax loop-holes for company directors/"exiles"/farmers/etc., they might as well put the gardai/army on advance notice for civil unrest.

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    Quote Originally Posted by Factorem View Post
    I predict inheritance tax changes to be the headliner in the forthcoming budget.

    The current threshold of €441k is now too high as house prices have dropped a good 30% with a lot more to go. The inheritance tax regime needs to change dramatically in order to reflect the dramatic changes in the property market.

    I expect the inheritance tax rate to be brought back to 1990s levels and the threshold reduced.

    €300k to €400k threshold and 30% to 40% tax is what I'm forecasting.

    Side note: if the government think they'll get away with screwing the PAYE worker whilst leaving open all the tax loop-holes for company directors/"exiles"/farmers/etc., they might as well put the gardai/army on advance notice for civil unrest.
    No way in hell inheritence tax will go to 30%.

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    Quote Originally Posted by Factorem View Post
    I predict inheritance tax changes to be the headliner in the forthcoming budget.

    The current threshold of €441k is now too high as house prices have dropped a good 30% with a lot more to go. The inheritance tax regime needs to change dramatically in order to reflect the dramatic changes in the property market.

    I expect the inheritance tax rate to be brought back to 1990s levels and the threshold reduced.

    €300k to €400k threshold and 30% to 40% tax is what I'm forecasting.

    Side note: if the government think they'll get away with screwing the PAYE worker whilst leaving open all the tax loop-holes for company directors/"exiles"/farmers/etc., they might as well put the gardai/army on advance notice for civil unrest.
    Capital Acquisitions Tax/CAT (Inheritance and Gift Tax) threshold rates are not €441K ... it depends on the relationship of the Beneficiary to the Disponer;

    For 2009;

    Group A - Child/foster child/minor child of a deceased child it is €542544
    Group B - Lineal Ancestor or Lineal Descendant : Brother, Sister, child of brother or sister it is €54254
    Group C - Others it is €27127

    Prior gifts/inheritances may also be taken into account which may lower one's exemption thresholds above -> bigger chance of getting a CAT hit.

    It's also not that long back in time when CAT went up depending on value to a rate of 40% .... it fell down a standard 20% in recent times .... climbed back up to 22% for gifts/inheritances taken on/after 20 Nov 2008

    In times when monetary values for assets were nowhere near the rises in levels in the past decade or so and coupled with the severe rates of CAT up to 40% during such times, it was a prohibitory tax on many Estates and Beneficiaries. Putting in place of Inheritance Tax Policies to pay the Tax would have covered the hit such Beneficiaries would take (but the Premiums on those would have been considerable so often not taken out) so Beneficiaries often would have got a nasty shock when it came to getting their entitlement in the hand - unless of course the Disponer spread their Estate around to various parties so as to allow the using up of as many different thresholds for CAT exemption as possible.

    It's only really kids who have escaped CAT from the 1/2 million euro approx threshold granted for recent years. Bros and Sis or non related would still have been taking CAT hits anyway if they got substantial benefits.

    Personally, I do think this is one area they may hit on Tuesday. But I don't expect to see a drastic alteration/manipulation of the threshold amounts - if they drastically lower the Group A exemption (the kid's one) there'll be murder. I'd be more inclined to think that they may just raise the CAT rate again up from 22% to what I do not know, perhaps 25%. It increased from 20 to 22% from last November - logic would dictate that it's a prime candidate to be increased again.

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    Quote Originally Posted by Factorem View Post
    I predict inheritance tax changes to be the headliner in the forthcoming budget.

    The current threshold of €441k is now too high as house prices have dropped a good 30% with a lot more to go. The inheritance tax regime needs to change dramatically in order to reflect the dramatic changes in the property market.

    I expect the inheritance tax rate to be brought back to 1990s levels and the threshold reduced.

    €300k to €400k threshold and 30% to 40% tax is what I'm forecasting.

    Side note: if the government think they'll get away with screwing the PAYE worker whilst leaving open all the tax loop-holes for company directors/"exiles"/farmers/etc., they might as well put the gardai/army on advance notice for civil unrest.

    You have to realise that FF are not a political party, but merely a front organisation for the landed ruling class. You will see a lot of broken heads on the streets before Fianna Fail do anything to upset the landed elite.

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    Quote Originally Posted by Cael View Post
    You have to realise that FF are not a political party, but merely a front organisation for the landed ruling class. You will see a lot of broken heads on the streets before Fianna Fail do anything to upset the landed elite.
    If they try and screw the small self-employed business man (i.e. under €100k a year) and the PAYE worker, they shouldn't be surprised if their tax receipts mysteriously decrease and lots of workers are on the streets protesting.

    Why pay into a system that's inherently unfair? Why not move to another jurisdiction where everything is cheaper: personal taxation, VAT, cars, car tax, tolls, bin charges, food, housing, etc.

    IMO, the inheritance tax for the landed classes issue is going to kick-off, big time. And rightly so.

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    Quote Originally Posted by Ah Well View Post
    Personally, I do think this is one area they may hit on Tuesday. But I don't expect to see a drastic alteration/manipulation of the threshold amounts - if they drastically lower the Group A exemption (the kid's one) there'll be murder. I'd be more inclined to think that they may just raise the CAT rate again up from 22% to what I do not know, perhaps 25%. It increased from 20 to 22% from last November - logic would dictate that it's a prime candidate to be increased again.
    House prices have fallen. Dramatically. They have to make drastic changes to the Group A exemption in order to keep incomes afloat.

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    I see absolutely nothing wrong with a 40% tax on inheritance.

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    Quote Originally Posted by Dreaded_Estate View Post
    I see absolutely nothing wrong with a 40% tax on inheritance.
    Do you see nothing wrong with hating rich people?

    Why should you pay tax @ 40% on money that was already taxed in the first place?

    Also, do see anything wrong when one section of society don't have to pay it, whilst another effectively get off scot free?

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    Quote Originally Posted by Factorem View Post
    Do you see nothing wrong with hating rich people?

    Why should you pay tax @ 40% on money that was already taxed in the first place?

    Also, do see anything wrong when one section of society don't have to pay it, whilst another effectively get off scot free?
    I don't hate rich people but I think inheritance tax is an area where significant taxes can be raised with zero negative effects on the productive economy. Very few taxes or spending cuts have that going for them.

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    Quote Originally Posted by Dreaded_Estate View Post
    I don't hate rich people but I think inheritance tax is an area where significant taxes can be raised with zero negative effects on the productive economy. Very few taxes or spending cuts have that going for them.
    So sons & daughters of farmers should be exempt from inheritance tax then?

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