Inheritance tax

I have never heard of inheritance tax until I came to England. To my horror, this is apparently rather common in Europe countries. It was not till I work in the tax industry that I feel so outraged about the whole tax regime revolving inheritance tax. Honestly, why should someone be made to pay tax just because they have been left some hard-earned wealth by their parents? To make matters worse, the tax rate is at a whopping 40%! To put things in context, if you inherit a house from your parents after they passed away and don’t have the money to pay the tax, you are likely to end up selling the house to pay the inland revenue!There is no inheritance tax at my home country and I really hope that it remains so. It’s bad enough that you have to make arrangements for your death when you grow old. Imagine having to make tax planning at the age of 60 to make sure that your children don’t suffer a huge amount of tax. With the house prices surging and showing no signs of lethargy, it is likely that more than half the people who inherit a property will have to pay inheritance tax. The current nil band rate at a meagre £275,000 is unlikely to be sufficient to exempt inheritance tax for most households without adequate tax planning.Sometimes, I am not entirely sure if I am in favour of a welfare state. True that you get certain service for free, for example the healthcare. But it’s not really ‘free’ as you still need to pay sky-high fees to have your annual body check for example or even getting a test on cholesterol can be pricey. Anyway, that’s just a little whine based on my tax knowledge.

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