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Inheritance Tax Made Simple by Andrew Komarnyckyj

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1.2 IHT in a nutshell (transfers of value)

Inheritance tax (often abbreviated to IHT) is essentially a wealth tax that is charged when wealth changes hands.

It is a tax that is charged principally on death. This is because the biggest transfer of wealth usually occurs on death. Inheritance tax may be charged during a person’s lifetime, but the occasion when it is charged most often is on death.

The technical legal term for the tax is that it is a charge on a ‘transfer of value’.

This begs the question of what is a ‘transfer of value’?

A transfer of value is what happens when you dispose of something of value (e.g. money), and you are worth less than you were before you disposed of it.

A transfer of value has three ingredients:

  1. There ...

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