Quick inheritance tax question

[B16JUS]

the estate band is 312,000 if the estate is e.g 315,000 do you only pay tax on the 3,000 or is it a case of a percent of the total amount.

cheers

[muley]

Just the amount over the nil point band, currently 312K

[B16JUS]

thats what i thought whats the % tax does it go on your earnings so if into the 40% income tax band you would pay 40% of anything over the 312,000

J

[Olf]

B16JUS said:

thats what i thought whats the % tax does it go on your earnings so if into the 40% income tax band you would pay 40% of anything over the 312,000

J

No because it's a capital gain and the rules for CGT changed earlier this year.

[esselte]

B16JUS said:

thats what i thought whats the % tax does it go on your earnings so if into the 40% income tax band you would pay 40% of anything over the 312,000

J

I thought you paid 40% on any amount over the threshold no matter what tax bracket you're in personally...? (It's actually a tax on the estate not the beneficiaries...)

[muley]

esselte said:

B16JUS said:

thats what i thought whats the % tax does it go on your earnings so if into the 40% income tax band you would pay 40% of anything over the 312,000

J

I thought you paid 40% on any amount over the threshold no matter what tax bracket you're in personally...? (It's actually a tax on the estate not the beneficiaries...)

Correct. It's nothing to do with CGT either.

[knk]

The tax is 40% on all over the nil rate band.
It must be paid before probate is granted, although the proportion of the tax due on property can be paid over 10yrs at 4% interest, up until said property is disposed of.
The executor is responsible.

It is the cruelest tax, hitting one at the worst possible time and is a result of petty jealousy and perceived class-war.

[Olf]

muley said:

esselte said:

B16JUS said:

thats what i thought whats the % tax does it go on your earnings so if into the 40% income tax band you would pay 40% of anything over the 312,000

J

I thought you paid 40% on any amount over the threshold no matter what tax bracket you're in personally...? (It's actually a tax on the estate not the beneficiaries...)

Correct. It's nothing to do with CGT either.

Yes - I was cowering in the corner waiting for that.

[esselte]

knk said:

The tax is 40% on all over the nil rate band.
It must be paid before probate is granted, although the proportion of the tax due on property can be paid over 10yrs at 4% interest, up until said property is disposed of.
The executor is responsible.

It is the cruelest tax, hitting one at the worst possible time and is a result of petty jealousy and perceived class-war.

The person it is actually aimed at is past caring I think.....

[B16JUS]

so as a example if there is a £800,000 cash estate no property etc the exempt amount of £312,000 comes off this so the estate tax is 40% of the remainder of £488,000 so the beneficiary would get £292,800 plus the exempt amount £312,000 totalling £604,800

J

[Olf]

B16JUS said:

so as a example if there is a £800,000 cash estate no property etc the exempt amount of £312,000 comes off this so the estate tax is 40% of the remainder of £488,000 so the beneficiary would get £292,800 plus the exempt amount £312,000 totalling £604,800

J

Nice work if you can get it.

[Justayellowbadge]

knk said:

The tax is 40% on all over the nil rate band.
It must be paid before probate is granted, although the proportion of the tax due on property can be paid over 10yrs at 4% interest, up until said property is disposed of.
The executor is responsible.

It is the cruelest tax, hitting one at the worst possible time and is a result of petty jealousy and perceived class-war.

Damn, fella, you don't post much but when you do you absolutely nail it.

Couldn't agree more.

[The Ben]

Olf said:

B16JUS said:

so as a example if there is a £800,000 cash estate no property etc the exempt amount of £312,000 comes off this so the estate tax is 40% of the remainder of £488,000 so the beneficiary would get £292,800 plus the exempt amount £312,000 totalling £604,800

J

Nice work if you can get it.

Still a bunch a theiving s though!!! To tax you when your dead is just the last straw isnt it!! they have to get one final say in the matter... Not like said above the taxed person really cares... and it is I guess money for nothing... but still I cannot see how the treasury can/should have a claim on it morrally (but then again, nobody got rich on morals, other than the church)

[esselte]

The Ben said:

Olf said:

B16JUS said:

so as a example if there is a £800,000 cash estate no property etc the exempt amount of £312,000 comes off this so the estate tax is 40% of the remainder of £488,000 so the beneficiary would get £292,800 plus the exempt amount £312,000 totalling £604,800

J

Nice work if you can get it.

Still a bunch a theiving s though!!! To tax you when your dead is just the last straw isnt it!! they have to get one final say in the matter... Not like said above the taxed person really cares... and it is I guess money for nothing... but still I cannot see how the treasury can/should have a claim on it morrally (but then again, nobody got rich on morals, other than the church)

Don't get me wrong I wasn't agreeing with IHT but just pointing out that it's aimed at the deceased,not the inheritors...

[The Ben]

esselte said:

The Ben said:

Olf said:

B16JUS said:

so as a example if there is a £800,000 cash estate no property etc the exempt amount of £312,000 comes off this so the estate tax is 40% of the remainder of £488,000 so the beneficiary would get £292,800 plus the exempt amount £312,000 totalling £604,800

J

Nice work if you can get it.

Still a bunch a theiving s though!!! To tax you when your dead is just the last straw isnt it!! they have to get one final say in the matter... Not like said above the taxed person really cares... and it is I guess money for nothing... but still I cannot see how the treasury can/should have a claim on it morrally (but then again, nobody got rich on morals, other than the church)

Don't get me wrong I wasn't agreeing with IHT but just pointing out that it's aimed at the deceased,not the inheritors...

I know, Im just a muppet for not reading my post correctly before pressing the magical submit button, I was agreeing with you!

[knk]

The tax is aimed at depriving the family of assets that their late relative earned, paid tax on, saved, paid tax on the interest or income of and then, when they died their family pay tax on.
Tax is paid "by the estate" but those left behind are the ones that are deprived.
The super rich plan well and avoid or mitigate it. The poor and feckless are untroubled by it. Those who live honestly and well and have worked hard are struck by it.
Those with a house almost inevitably exceed the Nil rate band and many have no other assets. The house is thus required to be sold, hitting those left at their weakest and most vulnerable time and depriving them of a link to their past, and leaving only the memory of their loss.

bds, jealous, dishonest, thieving, moral and integrity free bds.

Kam

[Justayellowbadge]

It is perhaps the only wholly avoidable tax, though.
Estate planning is no longer the preserve of the genuinely wealthy - everyone should investigate.

[Flip Martian]

knk said:

The tax is aimed at depriving the family of assets that their late relative earned, paid tax on, saved, paid tax on the interest or income of and then, when they died their family pay tax on.
Tax is paid "by the estate" but those left behind are the ones that are deprived.
The super rich plan well and avoid or mitigate it. The poor and feckless are untroubled by it. Those who live honestly and well and have worked hard are struck by it.
Those with a house almost inevitably exceed the Nil rate band and many have no other assets. The house is thus required to be sold, hitting those left at their weakest and most vulnerable time and depriving them of a link to their past, and leaving only the memory of their loss.

bds, jealous, dishonest, thieving, moral and integrity free bds.

Kam

S'right... On what POSSIBLE grounds can ANY government claim back part of someone's estate?!!!! Totally immoral. At least raise the out of date bloody threshold to stop so many people having to pay it who wouldn't have qualified for it 10/20 years ago...

[Mobile Chicane]

B16JUS said:

the estate band is 312,000 if the estate is e.g 315,000 do you only pay tax on the 3,000 or is it a case of a percent of the total amount.

cheers

Get advice. There are ways of mitigating this

[dazco]

Flip Martian said:

knk said:

The tax is aimed at depriving the family of assets that their late relative earned, paid tax on, saved, paid tax on the interest or income of and then, when they died their family pay tax on.
Tax is paid "by the estate" but those left behind are the ones that are deprived.
The super rich plan well and avoid or mitigate it. The poor and feckless are untroubled by it. Those who live honestly and well and have worked hard are struck by it.
Those with a house almost inevitably exceed the Nil rate band and many have no other assets. The house is thus required to be sold, hitting those left at their weakest and most vulnerable time and depriving them of a link to their past, and leaving only the memory of their loss.

bds, jealous, dishonest, thieving, moral and integrity free bds.

Kam

S'right... On what POSSIBLE grounds can ANY government claim back part of someone's estate?!!!! Totally immoral. At least raise the out of date bloody threshold to stop so many people having to pay it who wouldn't have qualified for it 10/20 years ago...

I am in the middle of all this. It is medieval at the very least.