inheritance tax

(redirected from IHT)
Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms, Wikipedia.

inheritance tax,

assessment made on the portion of an estate received by an individual; it differs from an estate tax, which is a tax levied on an entire estate before it is distributed to individuals. The inheritance tax is usually progressive and is determined by the amount of property received by the beneficiary, as well as by his or her relationship to the deceased. Strictly speaking, it is a tax on the right to receive the property; the estate tax can be characterized as a tax on the right to transmit the property. All states impose either an estate tax or an inheritance tax, some states employing both. A related federal levy is the gift tax, designed to prevent people from avoiding inheritance and estate taxes by giving away property before death.

In the United States, the federal government levied inheritance taxes during the Civil War period and again during the Spanish-American War; since 1916, however, a progressive estate tax has been imposed. The U.S. tax law of 1981 greatly reduced estate and gift taxes by raising exemptions (from $175,000 to $600,000) and lowering rates, and a 2001 law calls phase out the federal estate tax by 2012; estate taxes in 40 states that are based on the federal tax credit for state estate taxes would be phased out in 2006.

inheritance tax

1. (in Britain) a tax introduced in 1986 to replace capital transfer tax, consisting of a percentage levied on that part of an inheritance exceeding a specified allowance, and scaled charges on gifts made within seven years of death
2. (in the US) a state tax imposed on an inheritance according to its size and the relationship of the beneficiary to the deceased
References in periodicals archive ?
This is known as a Deed of Variation and it can be used to deliver immediate relief from IHT.
So while far fewer people actually end up liable to IHT than is often thought, and while there are ways of minimising your exposure, the state of the nation's finances and the Coalition's determination to address them, mean that this tax is here to stay for the time being.
Transfers during lifetime to other individuals are potentially exempt, which means that IHT may become chargeable if the transferor does not survive for seven years from the date of the transfer, but otherwise the transfer will be hilly exempt.
Through Mazu Profiler, the IHT team gains visibility into the interactions between users, applications, network elements and systems.
However this, together with earlier rules around married couples "inheriting" each other's allowance and the myriad of other allowances for gifts and charitable donations, mean that IHT planning has become more complex than ever
Gifts made by parents to their child on the occasion of marriage are also exempt from IHT up to PS5,000 per parent (PS2,500 for gifts made by grandparents).
Seneca says it is the only service of its kind that matches up investors seeking to exempt their assets from IHT with quality businesses that are seeking to borrow funds.
And with the threshold frozen until at least 2019, more people could get sucked in as the minimum IHT threshold usually increases at rate equivalent to at least inflation.
We also believe that this is the right moment to rename the IHT as the International New York Times to create a single global media brand.
65) Security concerns related to attorney-client meetings, and in particular the passing of notes and other information between detainees and the outside world, have been a long-standing issue at the IHT.
8) The HRW Report concludes that the Ad-Dujayl trial did not meet essential fair trial standards and that the credibility of the entire IHT process is doubtful.