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Verschonungsabschlag

English translation: basic relief

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Verschonungsabschlag
English translation:basic relief
Entered by: James Phetterplace
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18:09 Dec 14, 2010
German to English translations [PRO]
Bus/Financial - Law: Taxation & Customs / inheritance tax law/German Erbschaftssteuergesetz
German term or phrase: Verschonungsabschlag
"§ 13a (ErbStG) Steuerbefreiung für Betriebsvermögen, Betriebe der Land- und Forstwirtschaft und Anteile an Kapitalgesellschaften(1) Der Wert von Betriebsvermögen, land- und forstwirtschaftlichem Vermögen und Anteilen an Kapitalgesellschaften im Sinne des § 13b Abs. 4 bleibt insgesamt außer Ansatz (Verschonungsabschlag). Voraussetzung ist, dass die Summe der maßgebenden jährlichen Lohnsummen des Betriebs, bei Beteiligungen an einer Personengesellschaft oder Anteilen an einer Kapitalgesellschaft des Betriebs der jeweiligen Gesellschaft, innerhalb von fünf Jahren nach dem Erwerb insgesamt 400 Prozent der Ausgangslohnsumme nicht unterschreitet....
(3) Ein Erwerber kann den Verschonungsabschlag (Absatz 1) und den Abzugsbetrag (Absatz 2) nicht in Anspruch nehmen, soweit er ....
(5) Der Verschonungsabschlag (Absatz 1) und der Abzugsbetrag (Absatz 2) fallen nach Maßgabe des Satzes 2 mit Wirkung für die Vergangenheit weg, soweit der Erwerber innerhalb von fünf Jahren (Behaltensfrist)"

Do we simply call this a "tax exemption"?
James Phetterplace
Germany
Local time: 04:46
basic relief
Explanation:
Changes in the access to the Verschonungsabschlag (Basic Relief)

It will be easier to access basic relief on company assets in the future. The minimum wage bill sum, prerequisite to benefit from the 85% relief (Regelverschonung - regular relief), will in the future only have to be 400 % of the original wage bill sum (Ausgangslohnsumme) for the last five years (until now: 650% for seven years). Companies with 20 employees will no longer be subject to the wage bill rule (Lohnsummenregelung). Consequently, the maintenance period (Behaltenszeitraum) was lowered from seven to five years. To receive the complete relief (Optionsverschonung - optional relief) the wage bill sum required amounts to 700% of the wage bill sums for seven years with a corresponding decrease of the maintenance period (Behaltensfrist) to seven years.
http://www.martindale.com/government/article_Sibeth_906238.h...
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casper
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Summary of answers provided
4(generous) business relief from IHTxxxAdrian MM.
3basic reliefcasper


  

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16 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
basic relief


Explanation:
Changes in the access to the Verschonungsabschlag (Basic Relief)

It will be easier to access basic relief on company assets in the future. The minimum wage bill sum, prerequisite to benefit from the 85% relief (Regelverschonung - regular relief), will in the future only have to be 400 % of the original wage bill sum (Ausgangslohnsumme) for the last five years (until now: 650% for seven years). Companies with 20 employees will no longer be subject to the wage bill rule (Lohnsummenregelung). Consequently, the maintenance period (Behaltenszeitraum) was lowered from seven to five years. To receive the complete relief (Optionsverschonung - optional relief) the wage bill sum required amounts to 700% of the wage bill sums for seven years with a corresponding decrease of the maintenance period (Behaltensfrist) to seven years.
http://www.martindale.com/government/article_Sibeth_906238.h...

casper
Native speaker of: Native in EnglishEnglish
PRO pts in category: 38
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3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
(generous) business relief from IHT


Explanation:
IHT = inheritance tax, formerly CTT/Capital Transfer Tax in the UK.

The rate of relief in DE is 85% to 100%, so a 'generous exemption'.



Example sentence(s):
  • Business relief. Relief from Inheritance Tax which is due on a transfer of relevant business property www.hmrc.gov.uk/cto/glossary.htm
  • Business reliefs. We wait to see just what the “generous exemptions for entrepreneurial business activities” will amount to

    Reference: http://docs.google.com/viewer?a=v&q=cache:0F9dOisVDywJ:www.e...
xxxAdrian MM.
Local time: 04:46
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 111
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