Inheritance tax

An inheritance or estate tax is a tax paid by a person who inherits money or property or a levy on the estate (money and property) of a person who has died.[1]

International tax law distinguishes between an estate tax and an inheritance tax—an estate tax is assessed on the assets of the deceased, while an inheritance tax is assessed on the legacies received by the estate's beneficiaries. However, this distinction is not always observed; for example, the UK's "inheritance tax" is a tax on the assets of the deceased, and strictly speaking is therefore an estate tax.

For historical reasons, the term death duty is still used colloquially (though not legally) in the UK and some Commonwealth countries.

Varieties of inheritance and estate taxes

  • Belgium, droits de succession or successierechten (Inheritance tax). Collected at the federal level but distributed to the regional level.
  • Bermuda: stamp duty
  • Brazil: Imposto sobre Transmissão "Causa Mortis" e Doação de Quaisquer Bens ou Direitos (Tax on Causa Mortis Transmission and as Donation of any Property and Rights). Collected at the state level. The Brazilian Senate limited the maximum rate to 8%,[2].
  • Czech Republic: daň dědická (Inheritance tax)
  • Denmark: Boafgift (estate duty). Collected at state level. Different rates depending on the relation to the deceased. Spouse: 0%. Children: 15%. Other relatives: 15% of the estate sum + additional 25% of the individual sum. The estate duty is calculated on the sum of the estate after deducting a free allowance on the estate (289,000 DKK in 2018).[3]
  • Finland: perintövero (Finnish) or arvsskatt (Swedish) (Inheritance tax) is a state tax. Inheritance to the close family is tax free up to the worth of 20 000 €, and increasing from there via several steps (for instance, being 13% for 60 000 € - 200 000 €) to the maximum of 19% that must be paid for the portion of the inheritance that exceeds one million euros. Taxation is more severe in case of remote relatives or those with no family connection at all (19-33%). [4]
  • France: droits de succession (Inheritance tax)
  • Germany: Erbschaftsteuer (Inheritance tax). Smaller bequests are exempt, i.e., €20,000–€500,000 depending on the family relation between the deceased and the beneficiary. Bequests larger than these values are taxed from 7% to 50%, depending on the family relationship between the deceased and the beneficiary and the size of the taxable amount [5]
  • Ghana: Inheritance tax on intangible assets
  • Ireland: Inheritance tax (Cáin Oidhreachta)
  • Italy: tassa di successione (Inheritance tax). Abolished in 2001[6] and reestablished in 2006. €1,000,000 exemption on a bequest to a spouse or child, and a maximum rate of 8%.[7][8]
  • Japan: souzokuzei 相続税 (Inheritance tax) paid as a national tax
  • The Netherlands: Successierecht (Inheritance tax) NB. as per 1 January 2010 Successierecht has been abolished for the erfbelasting regime, and is replaced with Erfbelasting with rates from 10% to 40%. for brackets by amounts and separation[9]
  • Switzerland has no national inheritance tax. Some cantons impose estate taxes or inheritance taxes.
  • United Kingdom: see inheritance tax (United Kingdom) (actually an estate tax)
  • United States: see estate tax in the United States
  • Spain: Impuesto sobre Sucesiones (Inheritance Tax). The amendment of Spanish law has been put into practice, in compliance with the European Court ruling of September 3 of last year, and on December 31, 2014 Order HAP/2488/2014, of December 29, was published in the Official State Bulletin, which approve the Inheritance and Gift Tax self-assessment forms 650, 651 y, and establishes the place, forma an term for its submission.[10][11]

Some jurisdictions formerly had estate or inheritance taxes, but have abolished them:

  • Australia abolished the federal estate tax in 1979,[12] but capital gains tax is levied on the sale of an asset or its transfer of ownership and if this occurs upon the death of the owner it constitutes a "crystalising action", and capital gains tax becomes assessable.
  • Austria abolished the Erbschaftssteuer in 2008. This tax had some of the features of the gift tax, which was abolished at the same time[13]
  • Canada: abolished inheritance tax in 1972. However, capital gains are 50% taxable and added to all other income of the deceased on their final return.[14]
  • Hong Kong: abolished estate duty in 2006 for all deaths occurring on or after 11 February 2006. (See Estate Duty Ordinance Cap.111)
  • India: had an estate tax from 1953 to 1985[15][16]
  • Israel: abolished inheritance tax in 1981, but inherited assets are subject to a 20% to 45% capital gains tax upon their sale[17]
  • Kenya: abolished estate duty tax by virtue of the Estate Duty (Abolition) Act No. 10 of 1982
  • Malaysia
  • New Zealand abolished estate duty in 1992
  • Norway: abolished inheritance tax in 2014[18]
  • Russia "abolished" "inheritance tax" in 2006, but have "fee" with rates of 0,3% but no more than 100 000 rubles and 0,6% but no more than 1 000 000 rubles.
  • Singapore: abolished estate tax in 2008, for deaths occurring on or after 15 February 2008.[19]
  • Sweden: abolished inheritance tax in 2005.[20] A retroactive decision exempted deaths during late December 2004 from inheritance tax, due to the many Swedish casualties in the 2004 Indian Ocean earthquake.[21]
  • Luxembourg
  • Serbia
  • Estonia
  • Mexico
  • Portugal
  • Slovak Republic
  • Hungary[22]
  • Bahamas[23]

Some jurisdictions have never levied any form of tax in the event of death:

UK

Inheritance tax was introduced with effect from 18 March 1986.

History (succession duty)

Succession duty, in the English fiscal system, is "a tax placed on the gratuitous acquisition of property which passes on the death of any person, by means of a transfer from one person (called the predecessor) to another person (called the successor)". In order properly to understand the present state of the English law it is necessary to describe shortly the state of affairs prior to the Finance Act 1894 — an act which effected a considerable change in the duties payable and in the mode of assessment of those duties.

The Succession Duty Act 1853 was the principal act that first imposed a succession duty in England. By that act a duty varying from 1% to 10% according to the degree of consanguinity between the predecessor and successor was imposed upon every succession which was defined as "every past or future disposition of property by reason whereof any person has or shall become beneficially entitled to any property, or the income thereof, upon the death of any person dying after the time appointed for the commencement of this act, either immediately or after any interval, either certainly or contingently, and either originally or by way of substitutive limitation and every devolution by law of any beneficial interest in property, or the income thereof, upon the death of any person dying after the time appointed for the commencement of this act to any other person in possession or expectancy". The property which is liable to pay the duty is in realty or leasehold estate in the UK and personalty—not subject to legacy duty—which the beneficiary claims by virtue of English, Scottish, or Irish law. Personalty in England bequeathed by a person domiciled abroad is not subject to succession duty. Successions of a husband or a wife, successions where the principal value is under £100, and individual successions under £20, are exempt from duty. Leasehold property and personalty directed to be converted into real estate are liable to succession, not to legacy duty.

Special provision is made for the collection of duty in the cases of joint tenants and where the successor is also the predecessor. The duty is a first charge on property, but if the property be parted with before the duty is paid the liability of the successor is transferred to the alienee. It is, therefore, usual in requisitions on title before conveyance, to demand for the protection of the purchaser the production of receipts for succession duty, as such receipts are an effectual protection notwithstanding any suppression or misstatement in the account on the footing of which the duty was assessed or any insufficiency of such assessment. The duty is by this act directed to be assessed as follows: on personal property, if the successor takes a limited estate, the duty is assessed on the principal value of the annuity or yearly income estimated according to the period during which he is entitled to receive the annuity or yearly income, and the duty is payable in four yearly instalments free from interest. If the successor takes absolutely he pays in a lump-sum duty on the principal value. On real property the duty is payable in eight half-yearly instalments without interest on the capital value of an annuity equal to the annual value of the property. Various minor changes were made. The Customs and Inland Revenue Act 1881 exempted personal estates under 300. The Customs and Inland Revenue Act 1888 charged an additional 1% on successions already paying 1% and an additional 11% on successions paying more than 1%. By the Customs and Inland Revenue Act 1889, an additional duty of 1% called an "estate duty" was payable on successions over 10,000.

The Finance Acts 1894 and 1909 effected large changes in the duties payable on death. As regards the succession duties they enacted that payment of the estate duties thereby created should include payment of the additional duties mentioned above. Estates under £1,000 (£2,000 in the case of widow or child of deceased) are exempted from payment of any succession duties. The succession duty payable under the Succession Duty Act 1853 was in all cases to be calculated according to the principal value of the property, i.e., its selling value, and though still payable by instalments interest at 3% is chargeable. The additional succession duties are still payable in cases where the estate duty is not charged, but such cases are of small importance and in practice are not as a rule charged.

United States

The United States imposed a succession duty by the War Revenue Act of 1898 on all legacies or distributive shares of personal property exceeding $10,000. This was a tax on the privilege of succession, and devises and land distributions of land were unaffected. The duty ran from 75 cents on the $100 to $5 on the $100, if the legacy or share in question did not exceed $25,000. On those over that value, the rate was multiplied 11 times on estates up to $100,000, twofold on those from $100,000 to $200,000, 21 times on those from $500,000 to a $1 million, and threefold for those exceeding a million. This statute was upheld as constitutional by the U.S. Supreme Court.

Many of the states also impose succession duties, or transfer taxes; generally, however, on collateral and remote successions; sometimes progressive, according to the amount of the succession. The state duties generally touch real estate successions as well as those to personal property. If a citizen of state A owns registered bonds of a corporation chartered by state B, which he has put for safe keeping in a deposit vault in state C, his estate may thus have to pay four succession taxes, one to state A, to which he belongs and which, by legal fiction, is the seat of all his personal property; one to state B, for permitting the transfer of the bonds to the legatees on the books of the corporation; one to state C, for allowing them to be removed from the deposit vault for that purpose; and one to the United States.

The different U.S. states all have other regulations regarding inheritance tax:

    • Louisiana: abolished inheritance tax in 2008, for deaths occurring on or after 1 July 2004[25]
    • New Hampshire: abolished state inheritance tax in 2003; abolished surcharge on federal estate tax in 2005[26]
    • Utah: abolished inheritance tax in 2005[27]

Some U.S. states impose inheritance or estate taxes (see inheritance tax at the state level):

  • Indiana: abolished the state inheritance on December 31, 2012[28]
  • Iowa: Inheritance is exempt if passed to a surviving spouse, parents, or grandparents, or to children, grandchildren, or other "lineal" descendants. Other recipients are subject to inheritance tax, with rates varying depending on the relationship of the recipient to the deceased.[29]
  • Kentucky: The inheritance tax is a tax on a beneficiary's right to receive property from a decedent's estate. It is imposed as a percentage of the amount transferred to the beneficiary:
    • Transfers to "Class A" relatives (spouses, parents, children, grandchildren, and siblings) are exempt
    • Transfers to "Class B" relatives (nieces, nephews, daughters-in-law, sons-in-law, aunts, uncles, and great-grandchildren) are taxable
    • Transfers to "Class C" recipients (all other persons) are taxable at a higher rate.[30] Kentucky imposes an estate tax in addition to its inheritance tax.[30]
  • Maryland
  • Nebraska
  • New Jersey: New Jersey law puts inheritors into different groups, based on their family relationship to the deceased person:
    • Class A beneficiaries are exempt from the inheritance tax. They includes the deceased person’s spouse, domestic partner, or civil union partner parent, grandparent, child (biological, adopted, or mutually acknowledged), stepchild (but not stepgrandchild or great-stepgrandchild), grandchild or other lineal descendant of a child
    • Class B was deleted when New Jersey law changed
    • Class C includes the deceased person’s: brother or sister, spouse or civil union partner of the deceased person's child, surviving spouse or civil union partner of the deceased person's child. The first $25,000 inherited by someone in Class C is not taxed. On amounts exceeding $25,000, the tax rates are: 11% on the next $1,075,000, 13% on the next $300,000, 14% on the next $300,000, and 16% for anything over $1,700,000
    • Class D includes everyone else. There is no special exemption amount, and the applicable tax rates are: 15% on the first $700,000, and 16% on anything over $700,000
    • Class E includes the State of New Jersey or any of its political subdivisions for public or charitable purposes, an educational institution, church, hospital, orphan asylum, public library, and other nonprofits. These beneficiaries are exempt from inheritance tax.
  • Oklahoma
  • Pennsylvania: Inheritance tax is a flat tax on the value of the decedent's taxable estate as of the date of death, less allowable funeral and administrative expenses and debts of the decedent. Pennsylvania does not allow the six month after date of death alternate valuation method that is available at the federal level. Transfers to spouses exempt; transfers to grandparents, parents, or lineal descendants are taxed at 4.5%. Transfers to siblings are taxed at 12%. Transfers to any other persons are taxed at 15%. Some assets are exempted, including life insurance proceeds. The inheritance tax is imposed on both residents and nonresidents who owned real estate and tangible personal property in Pennsylvania at the time of their death. The Pennsylvania Inheritance Tax Return (Form Rev-1500) must be filed within nine months of the date of death.[31]
  • Tennessee[32]

Other taxation applied to inheritance

In some jurisdictions, when assets are transferred by inheritance, any unrealized increase in asset value is subject to capital gains tax, payable immediately. This is the case in Canada, which has no inheritance tax.

When a jurisdiction has both capital gains tax and inheritance tax, inheritances are generally exempt from capital gains tax.

In some jurisdictions, like Austria, death gives rise to the local equivalent of gift tax. This was the UK model before the Inheritance Tax in 1986 was introduced, when estates were charged to a form of gift tax called Capital Transfer Tax. Where a jurisdiction has both gift tax and inheritance tax, it is usual to exempt inheritances from gift tax. Also, it is common for inheritance taxes to share some features of gift taxes, by taxing some transfers which happen during the lifetime of the giver rather than on death. The UK, for example, subjects "lifetime chargeable transfers" (usually gifts to trusts) to inheritance tax.

Historical

Ancient Rome

No inheritance tax was recorded for the Roman Republic, despite abundant evidence for testamentary law. The vicesima hereditatium ("twentieth of inheritance") was levied by Rome's first emperor, Augustus, in the last decade of his reign.[33] The 5% tax applied only to inheritances received through a will, and close relatives were exempt from paying it, including the deceased's grandparents, parents, children, grandchildren, and siblings.[34] The question of whether a spouse was exempt was complicated—from the late Republic on, husbands and wives kept their own property scrupulously separate, since a Roman woman remained part of her birth family and not under the legal control of her husband.[35] Roman social values on marital devotion probably exempted a spouse.[36] Estates below a certain value were also exempt from the tax, according to one source,[37] but other evidence indicates that this was only the case in the early years of Trajan's reign.[38]

Tax revenues went into a fund to pay military retirement benefits (aerarium militare), along with those from a new sales tax (centesima rerum venalium), a 1 tax% on goods sold at auction.[39] The inheritance tax is extensively documented in sources pertaining to Roman law, inscriptions, and papyri.[40] It was one of three major indirect taxes levied on Roman citizens in the provinces of the Empire.[41]

See also

References

  1. ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 358. ISBN 0-13-063085-3.
  2. ^ "RESOLUÇÃO N° 9, DE 1992".
  3. ^ "Boafgift - beregningseksempler" (in Danish). Danish Ministry of Taxation. 15 November 2017. Retrieved 30 April 2018.
  4. ^ "Vero.fi/Inheritance". Finnish Tax Administration.
  5. ^ "German Inheritance Tax".
  6. ^ "L 383/2001".
  7. ^ "Archived copy". Archived from the original on 2008-07-04. Retrieved 2008-04-29.CS1 maint: Archived copy as title (link)
  8. ^ "DL 262/2006".
  9. ^ "Bekijk hier de meest gestelde vragen over testamenten".
  10. ^ "New form for inheritance tax in Spain". Grupo Salvador desde 1969.
  11. ^ "Inheritance Tax - Rebate". InheritanceTax.
  12. ^ "Archived copy". Archived from the original on 2009-08-28. Retrieved 2009-08-14.CS1 maint: Archived copy as title (link)
  13. ^ "Erbschaftssteuer aufgehoben - oesterreich.ORF.at".
  14. ^ "Canada Inheritance Tax Laws & Information".
  15. ^ The Estate Duty Act came into effect 15 October 1953. The E.D.(Amendment) Act of 1985 discontinued the estate duty on deaths occurring on or after 16 March 1985.
  16. ^ "Inheritance tax on HNIs likely to be reintroduced", The Economic Times, 5 October 2017
  17. ^ "Your Taxes: Will the Tax Authority receive your inheritance". The Jerusalem Post - JPost.com.
  18. ^ "Skatteetaten - Arveavgift".
  19. ^ "Estate Duty - IRAS".
  20. ^ Inheritance tax does not reduce inequality, The Guardian, August 31, 2006
  21. ^ http://www.diva-portal.org/smash/get/diva2:457378/FULLTEXT01.pdf
  22. ^ Cole, Alan (17 March 2015). "Estate and Inheritance Taxes around the World". taxfoundation.org.
  23. ^ Eaves, Matt Woolsey and Elisabeth. "Tax Havens Of The World" Check |url= value (help). Forbes.
  24. ^ http://www.gov.ky/portal/page?_pageid=1142,1481212&_dad=portal&_schema=PORTAL
  25. ^ "Individuals".
  26. ^ Julie Garber. "Estate Taxes by State - Does New Hampshire Have an Estate Tax?". About.com Money.
  27. ^ "USTC - USTC".
  28. ^ "DOR: Inheritance Tax Information". 2014-12-22.
  29. ^ "Iowa Department of Revenue: Iowa Taxes". 2010-07-08.
  30. ^ a b "A Guide to Kentucky Inheritance and Estate Taxes: General Information" (PDF). Kentucky Revenue Cabinet. March 2003. Retrieved 2009-05-29.
  31. ^ http://www.state.pa.us/portal/server.pt/community/inheritance_tax/11414
  32. ^ Tenn. Code Ann. 67-8-303
  33. ^ Jane Gardner, "Nearest and Dearest: Liability to Inheritance Tax in Roman Families," in Childhood, Class and Kin in the Roman World pp. 205, 213.
  34. ^ Gardner, "Liability to Inheritance Tax," pp. 205, 211.
  35. ^ Gardner, "Liability to Inheritance Tax," p. 214; see further Bruce W. Frier and Thomas A.J. McGinn, A Casebook on Roman Family Law (Oxford University Press, 2004), pp. 19–20, and Beryl Rawson, "The Roman Family in Italy" (Oxford University Press, 1999), p. 15–18.
  36. ^ Gardner, "Liability to Inheritance Tax," p. 214.
  37. ^ Cassius Dio 55.25.5.
  38. ^ Gardner, "Liability to Inheritance Tax," p. 205.
  39. ^ Gardner, "Liability to Inheritance Tax," p. 205; Graham Burton, "Government and the Provinces," in The Roman World (Routledge, 1987, 2002), p. 428; Peter Michael Swan, The Augustan Succession: An Historical Commentary on Cassius Dio's Roman History Books 55–56 (9 B.C–A.D. 14) (Oxford University Press, 2004), p. 178.
  40. ^ Gardner, "Liability to Inheritance Tax," p. 205. A 2nd-century AD epitaph for a Roman of equestrian rank, for instance, lists procurator of the 5 percent inheritance tax on his career résumé (CIL 10.482).
  41. ^ Burton, "Government and the Provinces," p. 428.
2015 Ecuadorian protests

The 2015 Ecuadorian protests were a series of protests against the inheritance tax laws introduced by Ecuadorian President Rafael Correa. The protests began during the first week of June; becoming more organized and growing to hundreds of people on 8 June 2015. Since then, hundreds of thousands of Ecuadorians protested throughout Ecuador against President Correa and the controversial inheritance tax laws he introduced. The opposition and demonstrators protested stating that Correa wanted to follow "the same path as Venezuela’s government", creating a "criminal war of classes" while President Correa stated that the protests were aimed at destabilizing the government and such measures were for combatting inequality.

Accumulation and maintenance trust

Accumulation and maintenance ("A&M") trusts are a type of discretionary trust for the benefit of children and young people in England and Wales.

Adriaan van der Hoop

Adriaan van der Hoop (28 April 1778, in Amsterdam – 17 March 1854, in Amsterdam) was a Dutch banker and in the first half of the 19th century one of the richest men in the Netherlands. He also was an influential politician: a member of the city council, the States-Provincial in Haarlem and the Senate in The Hague. In his later years he became an important art and plant collector. On his death he left 250 paintings to the city of Amsterdam, who could barely pay the inheritance tax. In this way Van der Hoop contributed substantially to the collection of the Rijksmuseum.

Economy of Utah

Utah has a largely mixed economy covering industries like tourism, mining, agriculture, manufacturing, information technology, finance, and petroleum production. The majority of Utah's gross state product is produced along the Wasatch Front, containing the state capital Salt Lake City.

According to the Bureau of Economic Analysis the gross stated product of Utah in 2010 was 82 billion, just over half a percent of the total United States GDP of $14.55 trillion for the same year. The per capita personal income was $36,457 in 2005. Major industries of Utah include: coal mining, cattle ranching, salt production, and government services.

According to the 2007 State New Economy Index, Utah is ranked the top state in the nation for Economic Dynamism, determined by,

"The degree to which state economies are knowledge-based, globalized, entrepreneurial, information technology-driven, and innovation-based."

In eastern Utah petroleum production is a major industry. Near Salt Lake City, petroleum refining is done by a number of oil companies. In central Utah, coal production accounts for much of the mining activity.

Utah collects personal income tax at a single rate of 5%, but provides tax credits to low and middle income taxpayers to provide a progressive tax system. The state sales tax has a base rate of 4.65 percent, with cities and counties levying additional local sales taxes that vary among the municipalities. Property taxes are assessed and collected locally. Utah does not charge intangible property taxes and does not impose an inheritance tax.

As of December 2015, Utah's unemployment rate sat at 3.5%, and ranked 7th out of the 50 states and the District of Columbia.

Estate Duty Ordinance

The Estate Duty Ordinance is one of Hong Kong ordinances. It regulates the HK estate duty which was a tax imposed on capital asset - the net value of property situated in Hong Kong at the date of the taxpayer's death. It is chargeable irrespective of whether the deceased was a resident of Hong Kong.

Estate tax in the United States

The estate tax in the United States is a tax on the transfer of the estate of a deceased person. The tax applies to property that is transferred via a will or according to state laws of intestacy. Other transfers that are subject to the tax can include those made through an intestate estate or trust, or the payment of certain life insurance benefits or financial account sums to beneficiaries. The estate tax is one part of the Unified Gift and Estate Tax system in the United States. The other part of the system, the gift tax, applies to transfers of property during a person's life.

In addition to the federal estate tax, many states have enacted similar taxes. These taxes may be termed an "inheritance tax". The tax is often the subject of political debate, and opponents of the estate tax call it the "death tax". Some supporters of the tax have called it the "Paris Hilton tax".If an asset is left to a spouse or a federally recognized charity, the tax usually does not apply. In addition, a maximum amount, varying year by year, can be given by an individual, before and/or upon their death, without incurring federal gift or estate taxes: $5,340,000 for estates of persons dying in 2014 and 2015, $5,450,000 (effectively $10.90 million per married couple, assuming the deceased spouse did not leave assets to the surviving spouse) for estates of persons dying in 2016. Because of these exemptions, it is estimated that only the largest 0.2% of estates in the U.S. will pay the tax. For 2017, the exemption increased to $5.5 million. In 2018, the exemption doubled to $11.18 million per taxpayer due to the Tax Cuts and Jobs Act of 2017. As a result, only approximately 2,000 people (or 0.0006% of the population) in the US are currently liable for estate tax.

Finance Act 2004

The Finance Act 2004 (c 12) is an Act of the Parliament of the United Kingdom. It prescribes changes to Excise Duties, Value Added Tax, Income Tax, Corporation Tax, and Capital Gains Tax. It enacts the 2004 Budget speech made by Chancellor of the Exchequer Gordon Brown to the Parliament of the United Kingdom.

In the UK, the Chancellor delivers an annual Budget speech outlining changes in spending, tax and duty. The respective year's Finance Act is the mechanism to enact the changes.

The rules governing the various taxation methods are contained within the various taxation Acts. (For instance Capital Gains Tax Legislation is contained within Taxation of Chargeable Gains Act 1992.The Finance Act details amendments to be made to each one of these Acts.

Notable changes in the 2004 Act included changes to the taxation of UK pensions and provisions to reduce avoidance of inheritance tax.

Gift tax

In economics, a gift tax is the tax on money or property that one living person gives to another. Items received upon the death of another are considered separately under the inheritance tax. Many gifts are not subject to taxation because of exemptions given in tax laws. The gift tax amount varies by jurisdiction, and international comparison of rates is complex and fluid.

Helena Fourment with a Carriage

Helena Fourment with a carriage is a 1639 painting by Peter Paul Rubens, showing his second wife Helena Fourment, their son Frans and a carriage.

It was given to John Churchill, 1st Duke of Marlborough in 1706, possibly by the city of Brussels. It entered the Paris collection of Alphonse de Rotschild in 1884 and remained with his heirs until it was transferred to the French state in 1977 in lieu of inheritance tax. It is now in the Louvre Museum.

Inheritance Tax in the United Kingdom

In the United Kingdom, Inheritance Tax is a transfer tax. It was introduced with effect from 18 March 1986, replacing Capital Transfer Tax.

Inland Revenue

The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty. More recently, the Inland Revenue also administered the Tax Credits schemes, whereby monies, such as Working Tax Credit (WTC) and Child Tax Credit (CTC), are paid by the Government into a recipient's bank account or as part of their wages. The Inland Revenue was also responsible for the payment of child benefit.

The Inland Revenue was merged with HM Customs and Excise to form HM Revenue and Customs which came into existence on 18 April 2005. The former Inland Revenue thus became part of HM Revenue and Customs. The current name was promoted by the use of the expression "from Revenue and Customs" in a series of annual radio, and to a lesser extent, television public information broadcasts in the 2000s and 2010s.

Interest in possession trust

An interest in possession trust is a trust in which at least one beneficiary has the right to receive the income generated by the trust (if trust funds are invested) or the right to enjoy the trust assets for the present time in another way. The beneficiary with the right to enjoy the trust property for the time being is said to have an interest in possession and is colloquially described as an income beneficiary, or the life tenant.

Beneficiaries of a trust have an interest in possession if they have the immediate and automatic right to receive the income arising from the trust property as it arises, or have the use and enjoyment of it, such as by living in a property owned by the trustees. Such a beneficiary is also known as an income beneficiary or life tenant. There may be more than one income beneficiary, who may have either a joint tenancy or as tenants in common. The trustee must pass all of the income received, less any trustees' expenses, to the beneficiary/ies. For income tax purposes, the income so accruing to the income beneficiary is taxable income of the beneficiary, and taxed accordingly, unless otherwise exempted. A beneficiary who is entitled to the income of the trust for life is known as a ‘life tenant’ or as ‘having a life interest’. A beneficiary who is entitled to the trust capital is known as the ‘remainderman’ or the ‘capital beneficiary’.A trust can give the interest in possession to a beneficiary for a fixed period, for an indefinite period or, more usually, for the rest of the beneficiary's life. Such a life interest trust is the most common example of an interest in possession trust. In the United Kingdom, the 10-yearly inheritance tax charge may be payable on assets transferred into this type of trust on or after 22 March 2006.In the example of a life interest trust, the interest in possession ends when the income beneficiary dies. The capital of the trust will then pass to another beneficiary (or more than one). Where a charity has the right to income under a trust, it will also have an interest in possession, but this will clearly not be a life interest trust – an example would be a trust under which an art gallery has the right to display works owned by the trustees for a certain period.

Either the will or trust deed establishing the trust, or the general law, will set out how tax and trustees' expenses will be divided between the income beneficiary and the capital of the trust. Trustee investment policies will also allow emphasis on either present income (which may reduce the real value of the capital) or capital growth (increasing income in the long term and capital remaining when the interest in possession is terminated) or a balance.

Interest in possession trusts may be created as part of a will. Typically, a surviving spouse will be granted by the settlor a right to the income of the trust and/or a right to remain in the family home for the remainder of their life. When the surviving spouse dies, the rest of the fund (the remainder) may pass to the couple's children or other named persons.

Julian Le Grand

Sir Julian Ernest Michael Le Grand, FBA (born 29 May 1945) is an academic specialising in public policy. He is the Richard Titmuss Professor of Social Policy at the London School of Economics (LSE) and was a senior policy advisor to former Prime Minister Tony Blair.

Le Grand is the author, co-author or editor of seventeen books and over ninety articles on economics, philosophy and public policy. One of his books, Motivation, Agency and Public Policy: Of Knights and Knaves, Pawns and Queens, was described by The Economist as "accessible – and profound" and by The Times as "one of the most important books on public policy in recent years". He was one of Prospect magazine’s 100 top British public intellectuals, and one of the ESRC’s ten Heroes of Dissemination.He is one of the principal architects of the UK Government’s current ‘quasi-market’ reforms introducing choice and competition into health care and education. In addition, he originated and developed several innovative ideas in social policy, including one that became the ‘baby bond’ or Child Trust Fund, the Partnership Scheme for funding long term care endorsed by the 2005 Wanless Report Securing Good Care for Older People, the Educational Premium for the less well off and for looked after children, and the Social Care Practice in the 2006 Department for Education and Skills Green Paper, Care Matters.

Le Grand was one of the signatories of a letter published in The Guardian on 15 April 2008, which criticised the UK Government's "retreat in the face of a rightwing challenge over inheritance tax". Le Grand and his co-authors argued that inheritance tax "is one of the few tools which directly reduces inherited inequalities."In 2014 he was a member of the Commission on the Future of Health and Social Care in England for the King's Fund, chaired by Kate Barker which delivered its final report in September. He subsequently denounced the proposal of increasing NHS charges, which he described as a zombie idea.

Protective trust

The Protective Trust is a form of settlement found in England and Wales and several Commonwealth countries. It has marked similarities to asset-protection trusts found in several offshore jurisdictions and US Spendthrift trusts.

In such a trust assets are ordinarily held to pay an income to the beneficiary. The beneficiary may also have access to capital of the trust with the trustee's permission. The right to receive income from a trust would ordinarily be an asset in the hands of the beneficiary and could be sold, thwarting the intention of the donor to spread the gift over the recipient's lifetime. Additionally on a bankruptcy the right to the income would be sold by the beneficiary's trustee in bankruptcy.

To give protection to beneficiaries, a protective trust automatically converts into a discretionary trust, under which the beneficiary has no right to the income, if he or she does anything which breaches a condition specified in the document creating the trust.

The establishment of this discretionary trust is ordinarily exempt from the charge to UK inheritance tax on the establishment of discretionary trusts.

Such protective trusts have a longstanding history. To reduce the verbose definitions that had previously to be recited in the establishing documents of a protective trust, in England and Wales s33 of the Trustee Act 1925 (and equivalent legislation in other jurisdictions) provides that this protection will arise in any trust described as a "protective trust" in its trust deed.

Protective trusts are subject to challenge under creditor protection legislation as are any other forms of asset-protection. However many jurisdictions do not permit a trust to be broken where a debtor who remains a discretionary beneficiary only under a trust and cannot access the fund without the exercise of the trustees' discretion in his favour.

Slavery reparations scam

The "Slave Reparations Act" (also called the Slavery Reparation Tax Credit, Black Tax Credit or Black Inheritance Tax Refund) is a tax fraud related to the concept of reparations for slavery. The scam claims that filers can receive $5,000 or increased social security payouts for African-Americans born in the United States between 1911 and 1926.

It claims that African-Americans are entitled to a $5,000 slavery reparation tax credit. Below is a sample solicitation:

The goal of the scam is to get the victim to send all of their information to the scammer. By doing this, the scammer will gain the ability to commit identity theft on the victim.

This scam may have resulted from unpassed congressional legislation in 1999 to explore slave reparations. The bill, H.R. 40, would have created a commission to study the possibility of actual reparations to slave families.

Another payout quotes $43,209 as the estimated value of "40 acres and a mule," supposedly laid out in an 1866 bill that was passed by Congress but was vetoed by President Andrew Johnson. No such bill was entered into Congress in 1866. It is based on an actual order by Union General William Tecumseh Sherman, Special Field Order No. 15, that set aside land from Charleston, South Carolina to Jacksonville, Florida for the exclusive use of freed slaves. Each family would receive 40 acres (160,000 m2) from this holding. Sherman may have acted on his own authority. No record exists of President Abraham Lincoln or the War Department authorizing this action.

The Freedmen's Bureau controlled over 850,000 acres (3,400 km2) of confiscated land in 1865, and many of its officials intended to settle blacks on it. As President Johnson began to restore property to former Confederates, commissioner Oliver Otis Howard issued Circular 13. The document, put out in July, ordered rapid establishment of forty-acre plots in violation of presidential pardons.In response to Sherman's precedent and Howard's instructions, the White House issued Howard's Circular 15 in September 1865 ordering restoration of land to pardoned owners and taking them back from freed slaves who had received them under Special Field Order No. 15.

The Southern Homestead Act of 1866 did make public land in some states available to freed slaves. Most of this land was swampy or distant from travel routes or was claimed by lumber companies.

In April 2002, the Internal Revenue Service (IRS) received more than 100,000 attempts to claim reparation tax credits and paid out more than $30 million in erroneous refunds. The IRS continued to report false tax credit scams and claims in 2003 and 2004.

Taxation in the Netherlands

Taxation in the Netherlands is defined by the income tax (Wet op de inkomstenbelasting 2001), the wage withholding tax (Wet op de loonbelasting 1964), the value added tax (Wet op de omzetbelasting 1968) and the corporate tax (Wet op de vennootschapsbelasting 1969).

Taxation in the United Kingdom

Taxation in the United Kingdom may involve payments to at least three different levels of government: central government (Her Majesty's Revenue and Customs), devolved governments and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England, Council Tax and increasingly from fees and charges such as those for on-street parking. In the fiscal year 2014–15, total government revenue was forecast to be £648 billion, or 37.7 per cent of GDP, with net taxes and National Insurance contributions standing at £606 billion.

The Betrayal of Christ (van Dyck, Bristol)

The Betrayal of Christ is a c.1618-20 painting by Anthony van Dyck. He also produced two other versions of the same subject at around the same time, now in Madrid and Minneapolis.It was acquired by Paul Methuen. He bequeathed it to his cousin and godson Paul Methuen in 1757, who displayed it at Corsham Court. It remained in the family until 1984, when it was accepted by the UK government in lieu of inheritance tax and allocated to Bristol Museum and Art Gallery, which continues to hang it at Corsham Court. It is currently in storage.

Vicesima hereditatium

The Vicesima hereditatium was a Roman 5% tax on inheritance money.

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