when you die what percentage of what you have goes to the tax man?
2007-01-07 00:45:59 · 6 answers · asked by emnie 2 in Society & Culture ➔ Royalty
There isn't a death tax as such but there is an inheritance tax, which has quite rightly been quoted at 40%, the only way around it is this, if the person giving the inheritance away does it more than 7 years before they die then the tax isn't payable. So if you do have a rich relative, get them to pony up the dough well before they cark it. Alternatively if you have a company, they can invest in it, then should that business say cease trading then erm, the cash is yours :)
2007-01-07 01:00:44 · answer #1 · answered by thecoldvoiceofreason 6 · 0⤊ 0⤋
Luis T has given a very good answer and a useful link - or at least it would have been so if this question had been posted in the US section rather than the UK one!
As previously mentioned the rate is 40% on the excess over 285,000. You can, indeed, give away assets and hope you live seven years. If, however, you have a business or substantial assets which you wish your heirs to enjoy, you might want to seek professional help. A lawyer and accountant working together can reduce your IHT burden and even eliminate it. It comes down to how much you have, how much control you want over your assets whilst you are still alive and what you are going to do with your money when you're gone. If you are giving it all to charity, the taxman gets nothing.
2007-01-07 01:43:34 · answer #2 · answered by skip 6 · 0⤊ 0⤋
40% above a certain level - but Brown has managed to trap more and more people since Labour by not increasing the tax free allowance in line with inflation.
Fiscal Drag - his favorite method of sneakily raising taxes!
2007-01-07 01:01:13 · answer #3 · answered by LongJohns 7 · 0⤊ 0⤋
depends. It is not the "death tax" it is the estate tax. It only affects the wealthiest 2 percent according to the IRS. but politicians, specially republicans call it the death tax, because death can happen to anyone :)
Here is the link
2007-01-07 00:52:52 · answer #4 · answered by Luis T 3 · 0⤊ 1⤋
Allowed up to estate of £285,000 and anything after that you pay 40% on.
eg if you own a house worth £300,000 you would have to pay 40% on the £15,000.
Hope that helps. x
2007-01-07 00:50:01 · answer #5 · answered by jayney 2 · 0⤊ 0⤋
100% of nothing is still nothing.
Give it all away seven years before you die then you've furked him good!
2007-01-07 00:47:51 · answer #6 · answered by Anonymous · 0⤊ 0⤋