Exemptions

Question 1

IHT exemptions (6) MB3ANS

Answer 1

1) spouse or charity or political family

2) BPR

3) Marriage exemption (TT)

4) small gift exemption £250 per donee

5) normal gift out of income: regular, income, no affect living

6) annual exemption

Question 2

SSE exemption (usually CT)

Answer 2

Ten %

Trading company

Twelve months

Six years back

Question 3

Gift relief

Answer 3

For CGT on gifts of business assets

Deduct gain from base cost

Restricted to
CBA/CA

where CBA is shares in an unquoted trading company
CA is shares in other trading company of at least 5%

Question 4

Rollover relief

Answer 4

(CGT/CT)

Amount not reinvested chargeable

Restricted to gain on sold asset not used for trading (gain x non-trade% becomes chargeable gain)

Question 5

Investors relief

Answer 5

(CGT)

Subscribed post 17/03/16
Trading
Unlisted
Not working
Three years of ownership

Question 6

BADR

Answer 6

CGT

10% rate
For entire business or part capable of separate operation

Five%
Trading Company
Two years prior
Work for company

Question 7

BPR

Answer 7

For IHT

Relevant business property
Ownership of 2 years
Sale contract, if there is one no BPR
Excepted assets: net assets-investments/net assets (becomes relief)

Question 8

PRR

Answer 8

(CGT)
Rules:
3 years for any reason
Last 9 months
Anytime working overseas
Up to 4 years working in UK

Relief is actual+deemed/whole time *net gain

Question 9

Part disposal

Answer 9

CGT

Cost is:
cost x market value of part disposed/market value of whole thing

Question 10

QSR

Answer 10

IHT

In TT

Tax will be given, show working and multiply by correct %

Comes off after tax