BPR & APR Flashcards
1
Q
What is the normal expenditure exemption?
A
- made out of income
- normal/regular pattern of giving
- standard of living unaffected
2
Q
What is the charity exemption?
A
- Can be conditional as long as condition is met within 12 months
- Charity must be in UK or EU
3
Q
What is the political party exemption?
A
- 2 MPs elected
OR - 1 MP + 150,000 votes
4
Q
What does BPR apply to?
A
- Unquoted shares - 100%
- Business or interest in a business - 100%
- Quoted shares giving control - 50%
- Assets used in business - 50%
(Business does not include wholly or mainly investment or dealing in land &/or shares)
5
Q
What is BPR?
A
- owned assets for 2 years before death
- If inherited as spouse get Spouses period of ownership
- If inherited as anyone other than Spouse, backdated to date of death
6
Q
BPR - what happens if qualifying assets A are sold and new qualifying assets B are bought?
A
B assets treated as acquired when the A assets were
7
Q
When does BPR apply on lifetime transfers?
A
After death the PET and LCT is re-assessed. In order for BPR to still apply the asset must:
- owned by transferee
- qualified for BPR on death (either the transferor or transferee)
- no min ownership for transferee