inheritance tax

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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 ?
Yet there was bipartisanship in 1974 when the Whitlam Labor Government introduced a major concession to surviving spouses in the assessment of estate duty, and in 1976 when the Fraser Coalition Government increased the concession.
As a nation we will require fiscal prudence and increased social spending as the provincial share in the National Finance Commission Award has increased, they have fifty percent control over natural resources, got General Sales Tax on services, duties in respect of succession of property, estate duty, capital gains and provincial powers to raise loans.
As the name suggests, its early years were spent on estate duty as a 'station wagon' being the mode of transport used for carrying staff and guests to and from the action during the grouse shooting season - a duty which also qualified the car for 'shooting brake' status.
As the name suggests, its early years were spent on estate duty as a station wagon being the mode of transport used for carrying staff and guests to and from the action during the grouse shooting season - a duty which also qualified the car for shooting brake status.
As the name suggests, its early years were spent on estate duty as a station wagon being the mode of transport for carrying staff and guests to and from the action during the grouse shooting season - a duty which also qualified the car for shooting brake status.
Our successive regimes-military and civilian alike-eliminated progressive taxes like Estate Duty, Gift Tax, Capital Gain and Wealth Tax, which were essentially taxes on the rich.
This is in addition to estate duty, which may be payable on the net value of the estate of the deceased.
There is no VAT on a property purchase and no capital gains tax or estate duty to be paid in Gi braltar.
As the name suggests, its early years were spent on estate duty being the type of transport used for carrying staff and guests to and from the action during the grouse shooting season.