“Deaths up = Taxes up”

We have just this week heard the 2016 Budget announcement from the Chancellor —  George Osbourne.   Pensioners have once again been ‘protected’?   No cuts to benefits for older people  — not even to Winter Fuel Allowance.   However the Chancellor keeps reminding us he has a ‘long term plan’, so beware.

Buried in the myriad of supporting paperwork that goes behind the headlines there is a forecast about Inheritance Tax.    It was only paid by 4.8% of people who died in 2013/14, but, because of the increase in the ageing population and rising property values, this proportion will increase to 9.9% of people who die by 2018/19.

This is great news for the Chancellor because, without doing anything, his Inheritance Tax take will more than double.    The even better news  from last year was that thanks to a relatively ineffective flue vaccine, we had the highest number of deaths since 1999.

The total Inheritance Tax take this year is expected to be a coffin full of  £4.6 Billion.   Let’s hope they don’t cremate it!

So, in tax terms the older population can expect to well treated, at least while they are alive and voting.  Although disappointingly there was no mention of additional money for domicilliary care inspite of the big increase in the older elderly population.   However, don’t expect the Chancellor to spend more money on improving elderly care in Social Services or the NHS.    Keeping people alive longer will be more expensive than killing them off and collecting more tax.   God save us from the Taxman !

Fingers crossed for warm winters and Winter Fuel Allowances in the years to come.

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4 Responses to “Deaths up = Taxes up”

  1. Dear JOHN!!! This is not a missive of missed love? but one of sweet memories, for me.
    The subject this week, you remind me of those men in grey suits-city slickers with a pitch at ”Speakers Corner”’ or on Tower Hill at a lunch time, with a ”Good book” to hand, clutched in the crook of the left elbow, and the smooth words tumbling out as they pontificate, about the evils of society, and quote the ”Good Book” only I suspect yours maybe ‘Hansard’ or if I am lucky the ‘Bible or Koran and the ‘Torah?’ Never mind it is the stirring passions within the speaker that gets one all wound up while admiring the grey suits!
    Now then lad!!! AS I crawl upon my HULL/Aberdeen Kipper Box and begin to ‘spout’ about wet fish, I note the links below to you previous comments?
    I must be respectful you appeared to have covered most of the subject matter some time ago, and as in life I note the ”Wheel is round to go around?” so welcome.
    The issues at hand if I recall your missive above is basically about the older generation, popping ones clogs and ones pension, and then the inheritance tax? or death duties.
    Ian Duncan Smith has made a noble gesture and resigned_ To what I ask? Is it to live off his pension, the winter fuel allowance, and rent rebates? or even unemployment benefit? Who Knows with all the cronies in Westminster-House of Commons and the LORDS.
    I note in yesterdays news in the media’s over 50% of the budget overspend in the social care bill is for PENSIONS? What is implied here, that the men in grey suits now wish to tax the state pension or scrap it if the emoluments to ones pension pot are over a certain minimum amount???
    As You have said John before where has that promised minimum pension of £155 paid to all gone??
    I am concerned of MK if I follow your ‘blogs’ of yesteryear, you discussed indeed argued that one had to provide for ones self and especially old age with respect to pension/health and social care, if one has done this with honesty? What is the societal budget for? I recognise the unfortunate, and those who may be trapped into relying on the ‘State’, but there has to be some incentive and indeed pride in helping ones self in assisting and providing for ones- self, and with this in mind George Osborne may be correct, and the Ian Duncan Smith may be correct? What ever the outcome, we all need to feel and have both self respect for ourselves and respect for each other, and work as one society to solve our problems.
    Debt is a ‘step too far’ when it is regarded as right to survive?? I for one must read and listen to Dickens and Mr Macorber 19s/11d happiness of soul and 20s/01d despair and uncertainty.
    To add to this equation we need to work up to our three score years and ten, and permit within limits immigration within the UK of a younger more able and gifted workforce.
    We cannot support unlimited migration (From Europe-the EU), or immigration from a wider world
    with unequal rights as to who has the rights to our sovereign UK social benefits/NHS and Unemployment benefits.
    Are we a united Europe? for defence and trade I would plead yes!!! for a political and economic ideology I would be more hesitant, and that is the ‘Devil in the Detail’.
    By the way my kipper box comes from a smoke house in Arbroath!!

    • john graham says:

      Maybe you should stand on you kipper box and put forward your case in the upcoming Scottish parliamentary election 😄
      On second thoughts I am not sure there are too many SNP voters in Milton Keynes.

      • david freeman says:

        As the ”Platters” songs of the 50’s ‘Smoke gets in your eyes”, with ”Red sails in the Sunset”!!!

  2. The day is Maundy Thursday, a day of the queens gift to her citizen’s in parcels of coin of the realm to a retired person(s) one for every year of her majesty’s realm? Not age? if I am correct, and for that civil servant within one! a half days holiday entitlement.
    Please enjoy the thoughts and digest the Rt. Honourable George Osborne’s Budget proposals, as he pulled those Easter ”’bunnies out of his hat”’, as the Chancellor of the Exchequer for 2016.
    ”Tin hats at the ready” for the outfall of opinions, and reactions to his budget speech.

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