Death Tax

[Hibs4185]

I’ve not seen anything in the news but I seen a respected figure on Linkedin talking about the scottish government applying a 20% death tax on estates worth £30,000-£325,000.

The reason for £325,000 is UK government inheritance tax kicks in at this level.

Surely not?? That’s going to effect most of the population

[wookie70]

I’ve not seen anything in the news but I seen a respected figure on Linkedin talking about the scottish government applying a 20% death tax on estates worth £30,000-£325,000.

The reason for £325,000 is UK government inheritance tax kicks in at this level.

Surely not?? That’s going to effect most of the population

I'd like to see some radical thinking on taxes but not sure this is one I would start with. Mental that the SG, who have a policy position of being against Council Tax, would not try and make that better. I'd prefer some some kind of wealth tax but the only issue is that those that are really rich normally employ accountants to find loopholes.

The biggest issue I can see with a death tax would be if partners, spouses or children etc lived in a property that was subject to the tax and they could not afford to pay it.

If we need to raise more through taxes then look at maxing out what those earning over 100K are paying. At that level of income the majority of your wages are spent on things you want not on things you need and investing in society is something you should want to pay for.

[Moulin Yarns]

I’ve not seen anything in the news but I seen a respected figure on Linkedin talking about the scottish government applying a 20% death tax on estates worth £30,000-£325,000.

The reason for £325,000 is UK government inheritance tax kicks in at this level.

Surely not?? That’s going to effect most of the population

https://www.fbdconsultancy.co.uk/resources/your-money/personal-taxation/inheritance-tax-a-summary#:~:text=Scope%20of%20the%20tax&text=For%202023%2F24%20the%20first,up%20to%205%20A pril%202026.

I'm sure they are correct.

[Just Alf]

Is this yet another anti Scot Gov scam or am I miss reading it?

[Moulin Yarns]

Is this yet another anti Scot Gov scam or am I miss reading it?

More than likely. I linked to the Real facts about inheritance tax.

[grunt]

... a respected figure on Linkedin

Who? And respected by who?

[neil7908]

Is the OP referring to this:

https://www.scotsman.com/news/opinion/columnists/new-death-tax-proposal-will-push-silent-majority-to-the-limit-david-alexander-4350304

Having never heard of this before, I read the article expecting to see a link to an SG statement. Hell, even a consultation, something to suggest this is in anyway a serious policy SG are considering.

But there is nothing. Based on the article it sounds like some groups have called for this. There is absolutely no suggestion SG are considering this.

Basically, it's a complete nonsense attack against SG.

Oh and Alexander can GTF. Horrible, nasty company. If he told me the sky was blue I'd still not believe him.

[Hibrandenburg]

Over my dead body.

[Jones28]

Over my dead body.

It would be a grave mistake.

[CropleyWasGod]

Pretty sure IHT is reserved.

I'm in the "non-starter" camp.

[Ozyhibby]

Pretty sure IHT is reserved.

I'm in the "non-starter" camp.

I don’t think that matters for the purpose of the story.


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[CropleyWasGod]

I don’t think that matters for the purpose of the story.


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For once, most of the comments on the piece are sensible and point that out to him.

[Hibs4185]

Yes it was David Alexander I was referring to. I couldn’t see any mention of it anywhere so I found it strange he was writing articles regarding it.

Sounds like a non starter as most have said. Thankfully so

[Ozyhibby]

Yes it was David Alexander I was referring to. I couldn’t see any mention of it anywhere so I found it strange he was writing articles regarding it.

Sounds like a non starter as most have said. Thankfully so

Everyone including the Scotsman know it’s a made up story but they run it anyway. Truth is no longer important in political life.


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[Hibs4185]

Everyone including the Scotsman know it’s a made up story but they run it anyway. Truth is no longer important in political life.


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I don’t know him but surely there must’ve been a consultation or something thy he’s picked up on? If he’s just invented out of fresh air to attack the government then he should no longer be able to write opinion pieces!

[Moulin Yarns]

I don’t know him but surely there must’ve been a consultation or something thy he’s picked up on? If he’s just invented out of fresh air to attack the government then he should no longer be able to write opinion pieces!

Headline in the scotsman

New ‘death tax’ proposal will push silent majority to the limit - David Alexander
In Scotland

In the article he says

When you die there is now a proposal to introduce a local inheritance tax (winningly called ‘a death tax’) which will start on all estates valued at £36,000 to £325,000 (which is the level that UK Government IHT kicks in) and will be charged at 20 per cent.

So, people who have accumulated £36,000 through a lifetime of work, pensions, and home ownership (and the bulk of most estates is contained in an individuals’ property) will be regarded as fair game to target for punitive government taxation.

The death tax proposal was put forward by several anti-poverty organisations and they used the phrase “putting Scotland’s money where his [Humza Yousaf’s] mouth is.”



So there you have it, unnamed organisations propose it, not the Scottish Government.

He has absolutely no basis in fact for his attack on the Scottish Government. Pure speculation on his part.

Respected figure on Linkedin?? You need to take things on social media, including LinkedIn with a bucket of salt.

[lapsedhibee]

I don’t know him but surely there must’ve been a consultation or something thy he’s picked up on? If he’s just invented out of fresh air to attack the government then he should no longer be able to write opinion pieces!

The columnist doesn't have to have invented it out of fresh air for it to be baseless. Plenty columns in the Telegraph, Express and Mail which can only be understood as following the owners' instructions to give them any sense, or point, at all.

[CropleyWasGod]

Headline in the scotsman

New ‘death tax’ proposal will push silent majority to the limit - David Alexander
In Scotland

In the article he says

When you die there is now a proposal to introduce a local inheritance tax (winningly called ‘a death tax’) which will start on all estates valued at £36,000 to £325,000 (which is the level that UK Government IHT kicks in) and will be charged at 20 per cent.

So, people who have accumulated £36,000 through a lifetime of work, pensions, and home ownership (and the bulk of most estates is contained in an individuals’ property) will be regarded as fair game to target for punitive government taxation.

The death tax proposal was put forward by several anti-poverty organisations and they used the phrase “putting Scotland’s money where his [Humza Yousaf’s] mouth is.”



So there you have it, unnamed organisations propose it, not the Scottish Government.

He has absolutely no basis in fact for his attack on the Scottish Government. Pure speculation on his part.

Respected figure on Linkedin?? You need to take things on social media, including LinkedIn with a bucket of salt.

Thay are named here:-

https://www.thetimes.co.uk/article/ef259060-5186-11ee-a518-203f78f24415

IPPR Scotland, Oxfam Scotland, the Poverty Alliance, the Child Poverty Action Group in Scotland, the Scottish Women’s Budget Group, One Parent Families Scotland and the Wellbeing Economy Alliance Scotland.

Yousaf apparently made the proposal in his leadership campaign.

[lapsedhibee]

Thay are named here:-

https://www.thetimes.co.uk/article/ef259060-5186-11ee-a518-203f78f24415

IPPR Scotland, Oxfam Scotland, the Poverty Alliance, the Child Poverty Action Group in Scotland, the Scottish Women’s Budget Group, One Parent Families Scotland and the Wellbeing Economy Alliance Scotland.

Yousaf apparently made the proposal in his leadership campaign.

Can't see the full article but what I can see includes these statements:
Humza Yousaf, the first minister, promised to introduce increased charges during the SNP leadership election.
... increased charges that he promised to explore during the SNP leadership election.

Does the full article make it clearer what he promised to do?

In any case, I don't see anything outrageous in the proposals. There'd be an instant flood of people promising to move to England, and a tiny few of them might actually go through with it.

[CropleyWasGod]

Can't see the full article but what I can see includes these statements:
Humza Yousaf, the first minister, promised to introduce increased charges during the SNP leadership election.
... increased charges that he promised to explore during the SNP leadership election.

Does the full article make it clearer what he promised to do?

In any case, I don't see anything outrageous in the proposals. There'd be an instant flood of people promising to move to England, and a tiny few of them might actually go through with it.

It doesn't. And I don't know what he said during the leadership election, either.

"exploring" would be looking at Page 1 of the "what can Scotland tax?" manual, and reading the paragraph "what can't it tax?"

[lapsedhibee]

It doesn't. And I don't know what he said during the leadership election, either.

"exploring" would be looking at Page 1 of the "what can Scotland tax?" manual, and reading the paragraph "what can't it tax?"

:aok:

[greenginger]

Can't see the full article but what I can see includes these statements:
Humza Yousaf, the first minister, promised to introduce increased charges during the SNP leadership election.
... increased charges that he promised to explore during the SNP leadership election.

Does the full article make it clearer what he promised to do?

In any case, I don't see anything outrageous in the proposals. There'd be an instant flood of people promising to move to England, and a tiny few of them might actually go through with it.

I thought Scotland was desperate to attract young people to the country because of our ageing population .

Hammering people with new taxes is not likely to attract the high skilled personnel we’re looking for.

[lapsedhibee]

I thought Scotland was desperate to attract young people to the country because of our ageing population .

Hammering people with new taxes is not likely to attract the high skilled personnel we’re looking for.

Yes, because that'll be foremost in every young person's mind when they're deciding where to work, how much inheritance tax their grandchildren might have to pay.

[Moulin Yarns]

I thought Scotland was desperate to attract young people to the country because of our ageing population .

Hammering people with new taxes is not likely to attract the high skilled personnel we’re looking for.

https://ifs.org.uk/articles/will-be-biggest-tax-raising-parliament-record

Still lower than the UK though 😉

[greenginger]

https://ifs.org.uk/articles/will-be-biggest-tax-raising-parliament-record

Still lower than the UK though 😉

What’s still lower than the UK ?

[Moulin Yarns]

What’s still lower than the UK ?

Personal taxation!

[greenginger]

You saying personal taxation is lower in Scotland than the rest of UK. ?

[Moulin Yarns]

You saying personal taxation is lower in Scotland than the rest of UK. ?

For the vast majority.

[greenginger]

For the vast majority.

The overall take in personal tax is higher in Scotland than the rest of UK.

How many people only pay the starter rate and get the £20 saving compared to those on £50000 who will pay £1500 more.

[danhibees1875]

For the vast majority.

52% of tax payers pay less tax than in rUK. 48% pay more.

That hides the numbers between what is more and what is less as well of course.
Those paying less are paying £22 less, those paying more are paying a range more - up to thousands.


https://www.gov.scot/publications/scottish-income-tax-factsheet-2023-24/

[greenginger]

52% of tax payers pay less tax than in rUK. 48% pay more.

That hides the numbers between what is more and what is less as well of course.
Those paying less are paying £22 less, those paying more are paying a range more - up to thousands.


https://www.gov.scot/publications/scottish-income-tax-factsheet-2023-24/


I think that 52% figure was calculated before the recent round of wage rises brought on by cost of living rises.

I don’t think tax bands have been altered to take these rises into account so I would doubt there is now 52% paying less.

[Hibrandenburg]

Does it even make sense to discuss taxation in a system where the vast majority of taxes that are raised in Scotland by a Parliament outside Scotland where only some of that is returned in grant form but not enough to mitigate poor decisions made in the aforementioned Parliament and thus forcing the Scottish government to raise taxes to do so?

[danhibees1875]

I think that 52% figure was calculated before the recent round of wage rises brought on by cost of living rises.

I don’t think tax bands have been altered to take these rises into account so I would doubt there is now 52% paying less.

Possibly, but I'd reserve judgement on that until the next factsheet. :greengrin

Those increases could have brought a similar number up from being non-taxpayers to now being in the "pay less tax than rUK" bracket.

[Stairway 2 7]

Does it even make sense to discuss taxation in a system where the vast majority of taxes that are raised in Scotland by a Parliament outside Scotland where only some of that is returned in grant form but not enough to mitigate poor decisions made in the aforementioned Parliament and thus forcing the Scottish government to raise taxes to do so?

Not some of it sent back we get more than we send. People were on here last month using GERS to point out Scotland was more well off than New Zealand. They are less happy with GERS when it says we get more than we put in.

About a third of tax revenue is from income tax which we obviously keep also

[RyeSloan]

52% of tax payers pay less tax than in rUK. 48% pay more.

That hides the numbers between what is more and what is less as well of course.
Those paying less are paying £22 less, those paying more are paying a range more - up to thousands.


https://www.gov.scot/publications/scottish-income-tax-factsheet-2023-24/

And also hides the fact that those earning between £43.5k and £50k face a marginal rate of 54% when NI is included.

This now includes the likes of teachers on pay band 4 and 5.

[danhibees1875]

Not some of it sent back we get more than we send. People were on here last month using GERS to point out Scotland was more well off than New Zealand. They are less happy with GERS when it says we get more than we put in.

About a third of tax revenue is from income tax which we obviously keep also

"Returned in grant form" makes the point true, if misleading.