Rafqat Hussain’s Post

𝐈𝐧𝐡𝐞𝐫𝐢𝐭𝐚𝐧𝐜𝐞 𝐭𝐚𝐱 𝐬𝐡𝐨𝐜𝐤 𝐟𝐨𝐫 𝐰𝐞𝐚𝐥𝐭𝐡𝐲 𝐟𝐚𝐦𝐢𝐥𝐢𝐞𝐬; Inheritance tax is regularly regarded as the “most unfair” tax in the UK and there had been reports the government had been considering scrapping inheritance tax or reducing its rate, however these failed to materialise in last week’s #Budget. Individuals are allowed to make gifts of unlimited value free of inheritance tax if the person survives a further seven years I.e “potentially #exempt transfers” (PETs). #Inheritancetax is charged at a rate of 40 per cent on the value of an individual’s gift above £325,000, if they die within three years, 32% after three years , 24% between four to five years, 16% between five and six years before death and falls to 8 per cent for those who die within six to seven years after the #gift. Estates of surviving #spouses and #civilpartners can pass on up to £1mn without an inheritance tax liability. #FBR #nationaltaxservice

Inheritance Tax, is a concern for many in the UK. Essential insights to secure your legacy. - **Understanding Inheritance Tax:** - Tax on the estate of the deceased. - 40% tax rate beyond the "nil-rate band." - Exemptions and reliefs available. - **Who Does Inheritance Tax Affect:** - Beneficiaries of the estate. - Executors responsible for tax payment. - Givers of gifts within a specific timeframe. - **Managing Inheritance Tax:** - Lifetime gifts to reduce estate value. - Utilizing the "nil-rate band" (£325,000). - Leveraging the "residence nil-rate band" (£175,000). - Inheritance Tax planning and professional advice. - Life insurance for tax liability coverage. www.mcp.org.uk #inheritance #legacy #taxplanning

Is an inheritance taxable? This, as with many tax-related matters, is not a simple 'yes' or 'no'. It usually depends on various factors. ⬥ Federal Estate Tax vs. Inheritance Tax Federal Estate Tax is a tax imposed on the estate of a deceased person. It is assessed based on the total value of the deceased person's assets and property at the time of their death. It only applies to estates that exceed a certain threshold. Inheritance Tax is imposed on the beneficiaries or heirs. They vary significantly from state to state. ⬥ State Laws Matter Where you live and where the deceased lived at the time of their death can significantly impact whether you will owe taxes on your inheritance. ⬥ Exemptions and Exclusions These are in place to protect certain assets and beneficiaries from taxation with both federal estate tax and state inheritance tax. ⬥ Inherited Retirement Accounts Have their own set of rules and tax implications. ⬥⬥⬥ Remember, Seek Professional Guidance To navigate the complex landscape of inheritance and estate taxes, it is advisable to seek professional guidance. An estate attorney or tax advisor can provide you with personalized advice based on your specific situation. #inheritance #inheritancetax #inheritanceplanning

INHERITANCE TAX When you die, your estate is made up of all your assets. If your estate is over a certain threshold, your beneficiaries will need to pay inheritance tax at 40%. Broadly speaking, the threshold is £325,000 with another £175,000 potentially claimed through the residential nil-rate band. Anything above this threshold will be taxed at 40%. Fortunately, with careful planning, you could reduce this tax. Transfers between married couples and civil partners are exempt, so a couple could have a £1M threshold before paying inheritance tax. Some gifts, trusts, investments, and insurance can help to mitigate the tax due as well. Click here to read more about reducing your inheritance tax bill: https://buff.ly/3rXqQ2v https://buff.ly/3IBqQuF

As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the heirs. However, the recipient is liable to income tax on any profit earned after the inheritance, such as dividends from shares and to capital gains tax on the increase in value on assets after the date of inheritance. #IHT #InheritanceTax #Inheritance

As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the heirs. However, the recipient is liable to income tax on any profit earned after the inheritance, such as dividends from shares and to capital gains tax on the increase in value on assets after the date of inheritance. #IHT #InheritanceTax #Inheritance

As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the heirs. However, the recipient is liable to income tax on any profit earned after the inheritance, such as dividends from shares and to capital gains tax on the increase in value on assets after the date of inheritance. #IHT #InheritanceTax #Inheritance

As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the heirs. However, the recipient is liable to income tax on any profit earned after the inheritance, such as dividends from shares and to capital gains tax on the increase in value on assets after the date of inheritance. #IHT #InheritanceTax #Inheritance

As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the heirs. However, the recipient is liable to income tax on any profit earned after the inheritance, such as dividends from shares and to capital gains tax on the increase in value on assets after the date of inheritance. #IHT #InheritanceTax #Inheritance

As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the heirs. However, the recipient is liable to income tax on any profit earned after the inheritance, such as dividends from shares and to capital gains tax on the increase in value on assets after the date of inheritance. #IHT #InheritanceTax #Inheritance