The Inheritance Tax Threshold Explained
"Inheritance tax threshold" is a term typically seen in the tax world and its importance to the customer means it's vital for everyone to know what it means. This article explains why certain people legally enjoy inheritance taxes and how an inheritance tax differs from a gift with remembered value.
The inheritance tax threshold is the amount you must be taxed on when you pass on your property, including any assets you leave to your loved ones. You can know more about the inheritance tax threshold via https://inheritance-tax.co.uk/area/inheritance-tax/. There are two main reasons why the UK inheritance tax threshold is low when compared to many other countries:
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1) The UK governs its own financial affairs and doesn’t rely on income from taxes levied by other countries.
2) The government makes a special allowance for married couples, meaning that their combined estate is taxed at a lower rate than if it were an individual’s estate.
Many people are not aware that there is a tax threshold in place which determines how much money you have to inherit before the estate tax kicks in. This means that no matter how big your family farm or business is, if it is worth less than this amount you will not have to pay any estate taxes on your inheritance.
There are a few things that you can do to help reduce your inheritance taxes if you or your family need more money. So, consult with an accountant to see if there are any ways to reduce or avoid inheritance taxes altogether.