Inheritance tax
Inheritance tax is a tax paid by a person who inherits money or property of a person who has died. Estate tax is a levy on the estate (money and property) of a person who has died - paid before anyone inherits it. Both are sometimes called death duty.
The rules are different in every country, and they are often changed. Some countries have stopped these taxes, and some have started them again. It many places it is easy to avoid them. Although not many people have to pay inheritance taxes they are very unpopular.
There were inheritance taxes in the Roman empire. In 1976 the US estate tax top rate was 70% and more than 7% of people who inherited had to pay it. In 2019 only 0.07% had to pay it because it now only hits people who inherit more than $13.61 million. [1]
Governments can collect a lot of money this way. In 2020-21 the British government got £5.76 billion from it.[2]
References change
- ↑ "Should governments tax the great boomer wealth transfer?". www.ft.com. Retrieved 2024-04-15.
- ↑ Agyemang, Emma (2023-07-26). "UK government receives record £5.76bn in inheritance tax". Financial Times. Retrieved 2023-07-26.