Inheritance Tax

Inheritance Tax – Inheritance tax is a tax imposed on assets or property that an individual receives from a deceased person. The tax is usually calculated based on the value of the inherited assets and may vary depending on the relationship between the deceased and the beneficiary. Inheritance tax ensures that transfers of wealth are regulated and that the government collects revenue from large estates. For taxation purposes, the income or gains arising from inherited assets during a Financial Year (FY) are assessed in the corresponding Assessment Year (AY). Taxpayers are required to report any taxable income received through inheritance and pay the applicable taxes during the Assessment Year.

Example: If a person inherits property in FY 2022–23 (1 April 2022 to 31 March 2023), any taxable gains or income from that property will be assessed and taxed in AY 2023–24