inheritance tax

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Related to Death duties: inheritance tax

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 called for phasing out the federal estate tax by 2012, but that was reversed and the tax remained in place on estates worth more than $5.49 million (twice that for couples). Changes in 2017 doubled those thresholds for 2018–25.

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 ?
d) The estimates obtained from the death duties for each specific type of asset are corrected in the light of independent evidence about the total value of those assets.
The Halifax bank says pounds 430,000 would be a fairer threshold for death duties but it isn't just about the taxing point, there's the iniquitous 40 per cent rate, too.
Nine out of ten people would pay lower death duties under the plan, to be unveiled tomorrow.
In 1993, he was pursued by the taxman for death duties and sequestrated.
Mr Mitchell and Mr Osborne said they would pay their full share of taxes or death duties.
Trevor Mostyn will return to the place that was lost to the Mostyn of Talacre family in 1920 due to death duties on Monday.
Yet death duties or 'inheritance tax' mitigate against this natural wish.
He should increase the payment threshold to pounds 500,000 and all death duties paid should go into the local authority pot - the vast majority of most people's estates come from houses anyway.
Death duties forced the break-up and sale of the estate in the 1970s after six centuries of continuous family ownership.
The present Duke of Gloucester was hoping to raise pounds 1 million to pay deferred death duties but the sale has already exceeded pounds 1.
DOWNING Street is considering a plan to make the super-rich pay more in death duties so extra cash can go to children from poorer families.
The French weekly L'Express has reported that the operation is shortly to be liquidated to pay death duties following the death of its founder Jean-Luc Lagardere in March last year.