Captal Taxation

Question 1

What is the Duke of Buccleuch case?

Answer 1

Prudent lotting should be considered in large estates to achieve the highest price

Question 2

What is the statutory basis for SDLT?

Answer 2

The Finance Act 2003

Question 3

How does the basis for CGT and IHT differ from market value?

Answer 3

The value of the properties are not assumed to be reduced because the market has been flooded.

Question 4

What did the Clay case set out and what did Walton v IRC say?

Answer 4

That the effects of a special purchaser can be taken into account for IHT purposes.

this was expanded in Walton v IRV in that special purchasers have to be real not hypothetical.

Question 5

What legislation governs inheritance tax?

Answer 5

The Inheritance Tax Act 1984

Question 6

Where would you find the definition of market value for inheritance tax?

Answer 6

IHT 1984 s160

Question 7

What legislation governs capital gains tax?

Answer 7

The Taxation of Chargeable Gains Act 1992