Friday, April 11, 2014
According to a new study by UHY International, “Old” world economies are charging higher estate and inheritance taxes than “New” world economies.
Governments in established European economies are becoming increasingly reliant on the income streams from inheritance taxes. The study found that the UK and Ireland impose the highest inheritance tax of all major economies. The inheritance tax threshold in the UK has been frozen at £325,000 (US $544,862), which is actually below the average London house price of £409,881 (US $686,058). From an estate worth $3 million, the UK takes 25.8% and Ireland takes 26%.
By contrast, the US provides a $5.34 million exemption that is adjusted annually for inflation. And with the anti-tax movement continuing to gain ground, more US states are likely to increase their exemption or repeal their estate taxes. Australia, India, Israel, New Zealand, and Russia have repealed their inheritance taxes in an effort to encourage more wealth creation and transmission.
See Isaac M. O’Bannon, The Worst Countries for Inheritance Taxes, CPA Practice Advisor, Apr. 7, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.