Got a tricky question? Receive an answer from students like you! Try us!

Advanced taxation - Case Study Example

Only on StudentShare
College
Case Study
Finance & Accounting
Pages 10 (2510 words)

Summary

Lord Bolsover is quite wrong in his thinking that in the event of his death,all his belongings will be divided equally between his wife and son.He is also wrong in assuming that the income and assets of the married coupe are added together for tax purposes…

Extract of sample
Advanced taxation

Lord Bolsover is quite wrong in his thinking that in the event of his death,all his belongings will be divided equally between his wife and son.He is also wrong in assuming that the income and assets of the married coupe are added together for tax purposes. The fact that he has not made any will so far will make his successors liable for inheritance tax in the event of his death.Present taxation system charges Inheritance Tax on any estate worth over 300,000 (for Tax year 2007 -2008). The value of estate is arrived at by adding up the value of every thing one owns including the share in jointly owned properties. The amount of large gifts made during the last 7 years before death will also be subjected to inheritance tax.Up to the value of 300,000 the estate is covered under 'nil rate band' and no IH tax is payable. Any value over the 'nil rate band' becomes taxable at a rate of 40 percent. Inheritance tax is to be paid out before the money and belongings of the deceased can be distributed according to his/her will.Based on the above premise unless some tax planning is not done immediately, Lord Bolsover's estate would be subjected to inheritance tax. The following are some of the ways in which the incidence of Lord Bolsover's estate to inheritance tax could be mitigated.The 'nil rate band' is an effective saving in the value of the estate which would otherwise be subjected to inheritance tax. ...
Download paper
Not exactly what you need?

Related Essays

Business Taxation
Theoretical findings have however undermined the notion of state spending. This has been backed up by an important strand in political science that have argued a declined trust and accountability on most state institutions. On the other hand, sociology has claimed that citizens have become more individualistic, reflective and more oriented on the responsibilities for meeting their own needs. Bilodueu, M (1996)…
10 pages (2510 words)
Deferred Taxation
Such differences only impact on the taxation computation of one period.…
6 pages (1506 words)