It is necessary for the property owner to lay down clearly the division of property in inheritance tax wills. Any unused nil rate band is passed on to a surviving civil partner or spouse thus making room for a discretionary trust in the will.

 

The first section of the individual’s estate includes gifts that have been given away in the last seven years and are therefore exempted from inheritance tax. This section is known as the ‘nil rate band’. Inheritance tax is applicable at the rate of 40% on the amount in excess of the nil rate band. The task of paying the tax bill lies with the executor. The assets need to be evaluated and their worth determined after the demise of the property owner. Inheritance tax needs to be paid within a span of six months from the end of the month in which the owner of the estate dies. The payment can be made through an instalment system.

 

If you receive a property as part of your inheritance and decide to part with it, you need to pay capital gains inheritance tax. There are many who inherit a house or a piece of land and then decide to sell it off. It is not paid at the time of the demise of the owner of the estate. On the contrary, it is applicable when the heir decides to sell the property.

 

Assets that are usually subject to capital gains tax include:

 

• A second home such as a holiday home overseas or in the United Kingdom
• Agricultural land
• Property that has been bought as a kind of investment
• Business premises such as a factory or a shop

 

Capital gains tax is not applicable on all assets. It is usually applicable on personal assets and property assets worth an inordinately high amount. These may include expensive paintings and jewellery.

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment

Name (required)

Mail (will not be published) (required)

Website

CAPTCHA Code *