Why is there so much talk about the inheritance tax?

Currently, the inheritance tax for children and straight-line relatives is 4 percent, but with a deductible of one million euros: it means that only those who inherit a wealth of over one million (and only on the part exceeding one million) must pay the tax, while the others have no obligation. With the proposal of the PD, the deductible of one million would be maintained (and therefore those who inherit less than that amount will continue to pay nothing), those who inherit between one and 5 million will continue to pay 4 percent, while those who inherit more than 5 million will have to pay a tax of 20 percent (always on the excess).

In Italy, however, compared with other European countries, the inheritance tax is very low and the inheritance tax revenue is just 0.1% of the country’s total tax revenue. In France the rate varies from 5 to 60 per cent, with an average value of 45 per cent; in Germany the maximum rate is 30% and in the United Kingdom 40%. In general, the average inheritance tax rate for OECD countries (the Organization for Economic Co-operation and Development, which brings together the world’s major developed countries) is 15 percent.

But let’s see in more detail what is this inheritance tax and how much is it.Inheritance tax is a tax that weighs on the inheritance and affects the assets of the deceased at the time of the succession of the heirs.

The following are subject to inheritance or gift tax: the properties, which, normally, are assessed by applying certain coefficients to the cadastral income; all obligations, credits, movable assets and money that enter the estate.

The inheritance tax covers all assets that have fallen into inheritance, as well as transfers to the spouse, or to relatives in a straight line (children, grandchildren, parents).

The tax will be due exclusively on a taxable basis calculated by making the difference between the total value of the assets of the estate and the total deductible inherited liabilities and other charges that can be tax deducted, and only for an amount exceeding one million. of Euro. On these goods a rate equal to 4% of the value received is applied. If, on the other hand, the inheritance concerns the transfer of assets between brothers or sisters, the percentage of the inheritance tax reaches 6%, with a deductible for each heir of 100,000 euros (the tax will therefore apply only to the value of the inherited assets exceeding 100,000 euros). On the other hand, for inheritance assets towards other relatives up to the fourth degree (for example, for the succession of assets between uncle and nephew) the deductible of 100,000 euros is no longer valid, and the percentage of the inheritance tax remains at 6%. For assets of the estate transferred to other subjects beyond the fourth degree of kinship, and for unrelated to the family of the deceased, the rate of the inheritance tax passes instead to 8% of the inherited value, without any deductible.

However, the discipline of inheritance tax in Italy provides some specific exemptions. Among these, we recall the government bonds of public debt, Italian postal bills, the amount of the accrued severance indemnity (so-called TFR), life insurance policies and vehicles registered in the Public Automobile Register (cars, motorcycles, etc. ).

Finally, we remind you that if the beneficiary is severely disabled, nothing will be due in terms of inheritance and gift tax.

However, the tax has had a series of rather troubled interventions after that distant 1862, when it was introduced for the first time: in 2001, with law no. 383 of 2001, the inheritance tax was completely abolished by the Berlusconi II government, which turned it into a real political battle. Then, however, the Prodi II government, in 2006, reintroduced it.

Discussions aside, the truth is that those with substantial assets now plan the succession, trying to avoid it, with adequate measures taken in life, such as donations can be.