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Tip of the Day Ditch Your Car

Ditch Your Car - If you live in a community where everything is within a reasonable distance, you need to ask yourself why you are driving a car, which when...

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Uk Inheritance Tax

Inheritance tax started in The United Kingdom in about 1796. It was enacted in England and Wales to be paid on estates over a certain amount. At the time they called it legacy and estate duties. Over time the amount of the estate to be taxed changed. Soon only estates over 20 Pounds were able to be taxed but usually they didn't collect any taxes on estates under 1500 pounds. Inheritance Tax was called Capital Transfer Tax up to about 1974. At that time they changed the name to Inheritance Tax due to the face that there were many ways to avoid Capital Transfer Tax.

So what is inheritance tax? Inheritance tax is money that you pay on any assets that you get from the estate of a person after they die. When someone dies their estate is divided up among the persons heirs and they have to pay tax on some of the thing that they inherit from the estate. Normally in an estate there will be a house, any money in banks, cars, and all the persons possessions. Usually the heirs decide to sell off most of the assets and divide up the money from it's sale after they pay taxes due on the estate.

You have to pay taxes on certain parts of the estate. If you sell a property you are paying taxes on that property sale. Taxes such as capital gain or loss are examples of taxes you might have to pay or tax rebates that you may get from losing money on the sale of part of an estate. There are also deductions that you may take from your taxes after an estate is divided. Funeral or cremation expenses can be paid out of the estate. Any claims against the estate such as collection accounts will also be paid out by the estate. Taxes on these estates will vary depending on how much the was. For example amounts less than $10,000 you pay 18% of that amount into taxes.

Inheritance tax is something that most people will pay in their lifetime so it is important to learn about how to pay inheritance tax and how much you need to pay.

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