If you are considering leaving your wealth to the next generation, then you should be aware of the inheritance tax that applies. There is a new tax on inheritances that came into effect in April 2017. The inheritance tax is a tax on the value of any inheritance received. It applies to individuals who are British citizens or residents, and also to those who are domiciled in the UK.
The inheritance tax can be paid by the person who inherits the money, their spouse, or any of their descendants. You can also know more about inheritance tax via https://inheritance-tax.co.uk/area/inheritance-tax/. If the recipient of an inheritance is a foreigner they may have to pay an additional 30% surcharge on top of the amount that would have been payable had they been a UK resident.
There are several methods by which you can avoid paying estate duty when your wealth passes to your children or grandchildren. One option is toterson reassignment: this allows you to transfer property into your family group trust without paying estate duty.
Another option is called ‘transformity’: this allows you to pass on assets free of capital gains tax so long as they are worth less than their original market value when transferred into your family group trust. Finally, there is the ‘right-to- Remain’ rule: this means that if you leave money in a will but do not meet certain conditions, then your wealth automatically transfers into a family
The Inheritance Tax is a tax that is levied on the wealthiest individuals and/or families in the United Kingdom. The government believes that this tax will help to reduce inequality and support British society.