Inheritance taxation in Muncan Republic
An inheritance tax is a tax imposed on the recipients of inherited assets. In contrast to an estate tax, an inheritance tax is paid by the recipient of a bequest rather than the estate of the deceased.
Inheritance taxation management
Funds from your estate are used to pay Inheritance Tax to HM Revenue and Customs (HMRC). This is done by the person dealing with the estate (called the ‘executor’, if there’s a will).
Your beneficiaries (the people who inherit your estate) do not normally pay tax on things they inherit. They may have related taxes to pay,
Inheritance taxpayers
Inheritance tax is what the beneficiary — the person who inherited the wealth — must pay when they receive it. The estate tax is the amount that’s taken out of someone’s estate upon their death. One, both, or neither could be a factor when someone dies.
Terms for the payment of inheritance taxes
You must pay Inheritance Tax by the end of the sixth month after the person died. For example, if the person died in January, you must pay Inheritance Tax by 31 July.
There are different due dates if you’re making payments on a trust.
HM Revenue and Customs (HMRC) will charge you interest if you do not pay by the due date.
Inheritance taxation reliefs
As a rule, the closer your familial relationship to the deceased, the higher the exemption and the lower the rate you’ll pay. Surviving spouses are exempt from inheritance tax.
Inheritance tax rates
The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold. Read more about Inheritance tax rates on this page.
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