inheritance tax

American  

noun

1. a tax levied on the right of an heir to receive a decedent's property, the rate being a percentage of the value of the property.

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inheritance tax British  

noun

1. (in Britain) a tax introduced in 1986 to replace capital transfer tax, consisting of a percentage levied on that part of an inheritance exceeding a specified allowance, and scaled charges on gifts made within seven years of death

2. (in the US) a state tax imposed on an inheritance according to its size and the relationship of the beneficiary to the deceased

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Etymology

Origin of inheritance tax

First recorded in 1835–45

Example Sentences

In Wednesday's budget the chancellor announced spouses would be able to transfer any of their £1m allowance before inheritance tax kicks in between partners.

From BBC

However as Reeves addressed the nation, farmers took to the streets in central London, protesting changes to inheritance tax rules announced in last year's budget.

From Barron's

A farmer said he hoped the Budget on Wednesday would include help to reduce his costs and called for planned changes to inheritance tax to be scrapped.

From BBC

In a nod to the local farming community, she said he had a "Starmer the farmer harmer" badge because his decisions around inheritance tax had "left farmers in uproar".

From BBC

"Substantial tax cuts" are not currently "realistic" because of the "dire state" of the public finances, he said, proposing instead "relatively modest" changes, such as raising tax thresholds and scrapping inheritance tax for family-run businesses.

From BBC

Related Words

• death tax
• estate tax