Capital Transfer Tax
Definition of 'Capital Transfer Tax'An inheritance tax levied in the United Kingdom on estates exceeding a certain value. The Capital Transfer Tax replaced the general estate duty in 1975, and was itself replaced by the Inheritance Tax (IHT) in 1986. The amount of tax was derived from the value of the deceased's assets transfered within a certain time of the death (both real estate and personal), less charitable gifts. |
|
Investopedia explains 'Capital Transfer Tax'Capital transfer taxes and other inheritance taxes make up a small portion of taxes collected in the United Kingdom. This is partially due to the nil rate band, which is the range of estate values that are excluded from the tax, as well as the various methods for avoiding its payment. Gifting an estate to charities or family members or creating a trust were two avoidance methods used. |
Related Definitions
Articles Of Interest
-
Tax-Efficient Wealth Transfer
Taxpayers with large taxable estates were required to take steps to reduce them before 2011. -
Top 7 Estate Planning Mistakes
Many people try to avoid this process altogether, making things difficult for heirs. -
4 Ways To Minimize Estate Taxes
These four strategies will ensure that most of your money goes to your loved ones, and not to the government. -
Uncle Sam's Surprise: Unexpected Sources Of Taxable Income
When you get an unexpected check, don't be surprised when the tax man shows up to collect his share. -
Leaving Inheritance To Children Easier Said Than Done
Consider your own retirement needs when deciding whether to leave an inheritance. -
Get Ready For The Estate Tax Phase-Out
Changes to federal legislation will affect how your assets are treated once you're gone - be prepared. -
Saving Money With A Private Annuity Trust
Learn about a strategy that could help you reduce taxes, diversify your portfolio and generate income. -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze.
Free Annual Reports