D Reliefs (2)

Question 1

What are lifetime transfers divided into?

Answer 1

Chargeable lifetime transfers (CLT)

Potentially exempt transfers (PET)

Exempt transfers.

Question 2

Where a gift has been made for more than 3 but less than 4? (Taper relief %)

Answer 2

20%

Question 3

Where a gift has been made for more than 5 but less than 6? (Taper relief %)

Answer 3

60%

Question 3

Where a gift has been made for more than 4 but less than 5? (Taper relief %)

Answer 3

40%

Question 4

Where a gift has been made for more than 6 but less than 7? (Taper relief %)

Answer 4

80%

Question 5

What is the cargeable transfer>

Answer 5

Transfer of value - Exemptions

Question 6

What happens with interest only/repayment mortgage in a death estate?

Answer 6

Is deducted

Question 7

What happens with sole proprietor/partnership business in a death estate?

Answer 7

Deducted

Question 8

What happens with stock and shares business in a death estate?

Answer 8

Deducted

Question 9

What happens with government securities in a death estate?

Answer 9

Deducted

Question 10

What happens with insurance policy proceeds in a death estate?

Answer 10

Deducted

Question 11

What happens with leasehold property in a death estate?

Answer 11

Deducted

Question 12

What happens with cars in a death estate?

Answer 12

Deducted

Question 13

What happens with personal chattels in a death estate?

Answer 13

Deducted

Question 14

What happens with debts due to the deceased in a death estate?

Answer 14

Deducted

Question 15

What happens with cash including ISAs in a death estate?

Answer 15

Deducted

Question 16

What happens with funeral expenses in a death estate?

Answer 16

Deducted but not part of the estate to get value of estate

Question 17

What happens with unpaid income tax and CGT in a death estate?

Answer 17

Deducted but not part of the estate to get value of estate

Question 18

What happens with debts due by the deceased in a death estate?

Answer 18

Deducted but not part of the estate to get value of estate

Question 19

What happens with exempt transfer to spouse/civil partner?

Answer 19

Deducted from value of estate to get chargeable estate

Question 20

When is RNRB relevant?

Answer 20

Deceased person died after 6 April 2017

Main residence passes to direct descendents of the deceased person

Question 21

When the nil rate band is £285000 in 2006/07?

Answer 21

Use £325000 in calculations

Question 22

Is £1000 on the first day of each month for nine months to her grandson to pay university living expenses exempt?

Answer 22

Yes as it’s part of normal expenditure out of income

Question 23

Is a transfer done on October 2016 when someone died on 15 January 2024 exempt?

Answer 23

Yes, as over 7 years