A Brief Explanation of Inheritance Tax

A lot of people are aware of taxation like wealth tax, property levy, and income tax, etc. However, few are aware of inheritance tax which is a form of tax that is collected from the person who receives an inheritance. You can click here inheritance-tax.co.uk/area/inheritance-tax/ to check inheritance taxes in the UK.

Inheritance tax is often called estate levy. The truth is that the two taxes are very different. However, the two terms also share many similarities. You can also observe similarities and differences in the method of paying the two tax rates.

The foundation of the inheritance tax is the exemption that is granted in many instances. In both cases, estate tax and inheritance tax are assessed in a similar manner, but the amount and the circumstances under which they are assessed are very different. Inheritance tax is directly proportional to the value of the property. The higher the value of the property the greater the tax rate you are required to pay.

The cost of the home is the main factor that the inheritance tax levy is based on. However, there are many other elements that affect the amount of inheritance levy, and one of them which is the most important is the appraised value of the inheritance. Both taxes are imposed by different institutions. The estate tax is imposed by the Federal Government, while inheritance tax is imposed through the state.

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