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Definition
This is the tax paid on the estate of a deceased person by the remaining beneficiaries. Such estates may include trusts, gifts or any other valuables that may have been left behind y the deceased and passed on to his beneficiaries.
What happens before one can start paying probate inheritance tax?
Before one can embark on the payment of any inheritance tax, there has to be an elaborate valuation of the inherited estate in order to determine whether or not the estate attracts ay inheritance tax and if so, how much? The process of valuing the assets and estates should be done to determine the application for probate which basically means applying for representation of the deceased in his estates. There is a minimum taxable inheritance which stands at over 312,000 pounds in the British tax laws. Upon the successful valuation and application for representation, you are then required to fill the relevant inheritance tax forms if the estate is valued and determined to be inheritance tax eligible.
Making inheritance tax payments
Once the estate has been valued and the tax rates the probate application verified and awarded to you in court, the next step is to determine what tax category your inheritance falls under. This is because there are different forms to fill depending on variable factors regarding the deceased and his/her estate. After all this forms are dully identified and filled you may proceed to make your payments over the internet, visa phone or physically visiting the tax office and presenting your check.
Inheritance tax payment time frame
In many cases the inheritor is naturally expected to pay inheritance tax on his new found estates within six months after the probate application is verified. Subsequent payments may then be done in different patterns ranging from annual or semi annual installments.
Are interest rates applicable on inheritance tax payments?
Interests will apply in the payment of inheritance taxes. In fact the interests are usually demanded at the time one applies for representation of the estate also known as probate application. Any outstanding interests must always be cleared before the courts can give grant to your probate applications. However different cases may be exempted form payment of inheritance tax payment depending on the circumstances surrounding their inheritance. If the inherited estate's value falls bellow 150,000 pounds and the deceased lived outside of Britain then the inheritance will not attract any inheritance tax. |
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