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How the U.K. Taxes Gifts

How the U.K. Taxes Gifts image

In the U.K., taxes on estates are handled differently than in the U.S. They also tax gifts differently.

The recent death of Bruce Forsyth, a television personality in the U.K., is a good opportunity to show how the U.K. and the U.S. treat taxes on gifts and estates differently.

In the U.S., we have an estate tax on estates that exceed the exemption amount. Currently, that amount is $5.49 million per taxpayer (increasing to $5.6 million on Jan. 1, 2018).

The estate must pay tax on the value above the exemption amount, before any assets are distributed to heirs.

The...