# the uk tax man



## marenostrum (Feb 19, 2011)

I would like to know how to avoid this ******* in terms of inehritance tax purposes. The uk has a tax band of 40% which is utterly ridiculous.

I have dependants and I want them looked after. I have assets in the uk that I do not want to sell right now but I am conscious that if something happened to me I my heirs would have to pay up money 40% of my assets.

I have heard I could gift some of these but then there is something like a seven year rule.

i mean you work you pay taxes and then when you are six feet under you get taxed again, you just gotta love it.

I never thought I'd say this but even Berlusconi has played fairer than the uk govt abolishing inheritance tax all together.

Any advice?


----------



## PoleDancer (Apr 14, 2010)

I'm afraid the best advice is "take professional advice" as it's a complex area with many pitfalls. Not one best addressed on internet forums. As you note, one strategy is lifetime gifting, so it's best to start planning well before you 'plan to die'.

If you want to do a bit of homework before seeing an adviser, the Daily Telegraph produces a downloadable guide: Telegraph Reader Guides - Telegraph Inheritance Tax Services

Given you indicate you are not originally from the UK, and no longer live in the UK, understanding the concepts of Domicile and Deemed Domicile would be a good idea.


----------



## SHendra (Oct 18, 2010)

I agree with Pole by gaining advice by a professional. 

I was widowed 10 years ago and I inherited a pension of my first husband. He worked with the same company for many years and did pay his taxes.. for most of the past 10 years whenever I've worked I got stuck paying a 'secondary' tax because of this. So this pension he took out to build for his future etc and paid taxes on ended up going a 2nd round of taxes since being paid out! I agree the UK tax system seams unfair especially once we've departed and all we wish for is to see our kids/family okay!


----------



## PoleDancer (Apr 14, 2010)

marenostrum said:


> i mean you work you pay taxes and then when you are six feet under you get taxed again, you just gotta love it.


Actually, if I understand correctly, it's even worse than that now.

If you're fortunate enough to have an income large enough to push you into the top 51.5% UK tax bracket, you no longer get the normal tax relief on money you put into your pension fund, but they still tax what you take out of your pension pot in the normal way. Then if there's any left, as you say, they can tax the money yet again when you die. You earn it once. They effectively tax it three times.

Can you guess which 'one-eyed Scottish idiot' brought that about?

(no disrespect intended to any other one-eyed or Scottish persons, or indeed any other idiots)


----------



## marenostrum (Feb 19, 2011)

thanks for the replies.

Yes uk taxation is a joke when it comes to inheritance but then again they have all the benefit scroungers to feed haven't they.....

And yes the scottish w....r made it even worse for everyone.


----------

