Potentially exempt transfers: inheritance tax
Article Abstract:
Scotland's 1986 Finance Act eliminated capital transfer tax in favor of inheritance tax, and abolished taxation of "lifetime gifts" in some instances. To qualify as a nontaxable transfer in Scotland, the lifetime gift must be provided by an individual or a trust, the recipient of the gift must make the transferred property part of his personal property, and the individual providing the gift must survive the date of transfer by seven years. This survival requirement has caused such donations to become known as PETs (potentially exempt transfers). The value of a PET is established by calculating the financial loss to the donor individual or estate. Types of transfers that do (and do not) qualify for PET tax treatment and tax rates for disqualified PETs (PETs for which the donor has failed to survive for seven years) are discussed. PETs are also compared to other forms of tax-exempt charitable donations and property transfers, and the effect of PETs on Scotland's tax collection procedures is analyzed.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1986
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Heritage property
Article Abstract:
Owners of property and buildings considered to be part of the UK national heritage may receive funds to maintain such property and buildings if they observe the provisions of Schedule 4 of the Inheritance Tax Act 1984. 'Douceur' arrangements are acceptable in sales of such property and buildings between private parties. Such property and buildings may also be traded in lieu of payment of certain forms of debt or taxes. Heritage property can be sheltered from various taxes, so long as the property is open to public access. Public access is defined for different types of property.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1987
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Heritage property
Article Abstract:
Heritage property is an asset which may be transferred without taxation upon the owner's death to certain government organizations. The assets may be real property such as paintings, or real estate. Categories include outright gifts for national purposes, gifts for public benefit, potentially exempt transfers, and conditionally exempt transfers. There are specific definitions, rules, and regulations for each category. Owners of potential heritage property are advised to become familiar with appropriate laws and legislation and-or hire an expert on the subject.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1987
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