How
to calculate inheritance tax
- First identify all the items included
in the estate.
- Include any exempt items.
- Include all non-exempt
gifts made within 7 years of the estate owner’s
death, as well as any gifts upon which the owner had
specified
conditions.
- Add up the total value of items included
in the estate for tax purposes.
- Apply any appropriate deductions.
- Subtract
ITT (Inheritance Tax Threshold) from the taxable value
of the estate. The tax is correspondingly
based on the
result.
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