Copy of `HMRC - UK taxation terms`

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HMRC - UK taxation terms Category: Business and Law > Tax glossary Date & country: 28/03/2012, UK Words: 221

Tenyearlycharge
An inheritance tax charge which arises on a relevant property trust on the tenth anniversary of the setting up of the trust and each subsequent ten-year anniversary.

Tenancyincommon
See tenants in common.

Tenantsincommon
Joint ownership of property where each joint tenant owns a separate share in the property. On the death of one of the joint owners, their share passes to their beneficiaries by their will or intestacy. There is more on joint property in Passing on your home to your children.

Testator
A man who has made a will.

Testatrix
A woman who has made a will.

Threshold
See inheritance tax threshold.

Transfer
Inheritance tax is charged on a transfer of value. That transfer can occur either during a person's lifetime, in the form of a gift, or on a person's death.

Transferee
A person who receives a transfer.

Transferor
A person who makes a transfer.

Transferofvalue
A transfer of value is a disposition made by a person as a result of which the value of his estate has decreased. All lifetime transfers must start with a disposition. Charges arising on death and on settled property where an interest in possession exists are deemed transfers of value

trans
Where an interest in possession trust arises before 6 April 2008, it will be regarded as a transitional serial interest (TSI) if it arises on or after 22 March 2006, but follows a previous interest in possession in effect immediately before that date. An interest in possession trust may also be regarded as a TSI if it arises on the death of the hol...

Trust
An obligation binding a person who holds the legal title, the trustee, to deal with the property for the benefit of another person; the beneficiary.

Trustfund
See settlement

Trustee
The person who holds the legal title to settled property and who is obliged to deal with the property for the benefit of the beneficiaries.

Trustsfordisabledpeople
A discretionary trust set up for the benefit of a disabled person . After 9 March 1991 these trust were treated as if the disabled person had an interest in possession in the property held in the trust. Any distributions from the trust to the disabled person are not taxable, but a charge to IHT will arise on their death and the trust fund will form...

UnilateralRelief
Where a transfer is liable to Inheritance Tax and also to a similar tax imposed by another country on assets situated in that country with which the UK does not have a double taxation agreement, relief may be available under unilateral relief provisions.

UnquotedShares
Shares in a company which are not quoted on a recognised stock exchange.

usm
Shares which are traded on the Unlisted Securities Market.

Variation
If all of the original beneficiaries agree, an inheritance under a will or under an intestacy can be changed after death.

Will
The legal document by which a person declares their intention as to what should happen to their estate after their death.

Woodlandsrelief
When a woodland in the United Kingdom is transferred on death, the person who would be liable for the tax can elect to have the value of the trees and underwood (but not the underlying land) excluded from the deceased's estate. If the timber is later disposed of its value at the time will be subject to inheritance tax.