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 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.

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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
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
References in periodicals archive ?
Ultimately there is little to choose between the two main contenders but slight preference is for Death Duty who has yet to be properly tested as a chaser.
This fourth refinement of the data is of special importance because it provides a broadly reliable means of correcting for the three main omissions from the estimates derived from death duty returns.
He said: "Death Duty fractured his hind joint at Leopardstown and that's why he wasn't travelling on the day.
The Mullins-trained Rathvinden, no match for Death Duty in the Drinmore at Fairyhouse last time, but a four-time winner over fences, holds engagements in the novice events at both Leopardstown and Limerick.
Limit for death duty is set to be frozen at pounds 325,000
Death Duty writer and director Steven Rainbow at the Primitivo restaurant; Steven Rainbow, director; Rupinder Sagoo, Primitivo; Colin Beasley, Grafton Gate; Pritpal Sagoo, owner of Primitivo; Phil Silk, Grafton Gate; Gemma Kennedy, Grafton Gate; and Henry Angel James, Grafton Gate; Phil Silk, Grafton Gate; Steven Rainbow, director; Colin Beasley, Grafton Gate; and Henry Angel James, Grafton Gate
Winner of the Grade 1 Drinmore Novice Chase at Fairyhouse last month, Death Duty was a general 8-1 shot for the JLT Novices' Chase at Cheltenham before the news broke yesterday.
Novices Mengli Khan and Death Duty impressed as part of the Elliott/Gigginstown treble, but the undoubted star of the show was classy mare Apple's Jade which slammed Nichols Canyon in the Bar One Racing Hatton's Grace, joining the elite band of dual-winners of the race.
'For many people paying death duty tax that starts at 40 per cent after your initial exemption is a key issue, but one which must be weighed against the need to maintain income at a certain level as this is also of prime importance,' said Phil Cook, partner and head of the specialist tax division at Clement Keys.
A CHANGE of plan by Gigginstown House Stud and Gordon Elliott will mean Death Duty takes on Footpad in a fascinating renewal of the Grade 1 Racing Post Novice Chase at Leopardstown on Tuesday.
Jack Kennedy rode Mengli Khan (Royal Bond Novice Hurdle) and Apple's Jade (Hatton's Grade Hurdle) to victory before Davy Russell completed the top-level treble aboard Death Duty, like his stablemates carrying the colours of Ryanair boss Michael O'Leary, in the Drinmore Novice Chase.
Celebrations for Michael O'Leary and his nephew Ted after Death Duty's win at Fairyhouse on Sunday; 2.