This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

IHT & INCOME TAXES_Double Dipping?

MIKEL
Posts:11
Joined:Wed Aug 06, 2008 3:02 pm

Postby MIKEL » Sat Mar 22, 2003 6:53 am

Assuming an estate will be subject to IHT. Are any allowances made in the calculation of the deceased persons income tax for the relevant tax year the person died.

What I am thinking off is that the estate may have cash in the bank say that is effectively derived from income sources. That cash will ultimately have to bear income tax if not having done so already, eg dividends etc. The point is I suppose is that the cash is going to be taxed again as part of the estate.

Is this correct?

Huw Williams
Posts:285
Joined:Wed Aug 06, 2008 2:18 pm

Postby Huw Williams » Sun Mar 23, 2003 10:45 pm

The simple answer is that IHT is calculated on your net estate - after taking into account liabilties such as the tax bill for the year of death.

Of course there can be complications.

Hope this helps


Huw Williams
enquiries@huwwilliams.co.uk

MIKEL
Posts:11
Joined:Wed Aug 06, 2008 3:02 pm

Postby MIKEL » Sun May 18, 2003 12:47 pm

Thankn you for your reply.

Thae answer then is as I suspected, it is by and large "Double" taxation first at 22% or 40% re income tax and then finally 40% on any residues.

Time for change I think.

Regards

MikeL


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”