BL - Tax - Individual IHT

Question 2

What is the value of a transfer for IHT purposes for a PET and LCT?

Answer 2

The amount by which the transferor’s estate is reduced.

Question 3

What is the value of a transfer for IHT purposes on death?

Answer 3

Market Value

Question 4

What IHT reliefs are available for both lifetime transfers and death estate?

Answer 4

• Spouse exemption
• Charity exemption
• Business property relief
• Agricultural property relief
• Political party exemption
• Exememption for gifts made for a national purpose or to maintain heritage funds
• Exemption of gifts to EBTs
• Exemption for gifts to housing associations

Question 5

What assets does Business Property Relief apply to for IHT?

Answer 5

• a business or interest in a business
• shares in an unquoted company
• share is a quoted company (if shareholder has control)
• land, buildings, machinery or plant owner by the transferor but used for a business purpose by either a company controlled by the person or a partnership of which the person was a partner.

Question 6

How long must the person have owned the assets for Business Property Relief to apply for IHT?

Answer 6

2 years immediately prior to the transfer.

Question 7

Is Business Property Relief available for a company that consists wholly or mainly of making investments?

Answer 7

No

Question 8

What assets attract 100% BPR for IHT?

Answer 8

• business / interest in a business
• shares in an unquoted company (regardless of shareholding)

Question 9

What assets attract 50% BPR for IHT?

Answer 9

• shares in a quoted company if the shareholder has control of the company
• Land, buildings, machinery and plant used in a business

Question 10

What is the condition for BPR need to be met if the person dies within 7 years of a lifetime transfer?

Answer 10

The property transferred still qualifies for BPR in the transferees hands when the transferor dies.