Exemptions and Relief - Death Only Flashcards
What are some death estates only reliefs?
1) Woodlands Relief
2) Quick succession relief
What does woodlands relief do?
Defers IHT on value of timber (not land) in woodlands forming part of death estate
What are ownership conditions for woodlands relief?
1) Must have owned for at least 5 years before death if purchased it
2) If inherited it, no minimum ownership period
What is the effect on IHT on woodlands relief?
IHT on value of timber deferred, not eliminated
When is tax payable on woodlands relief?
When timber is sold or gifted (not the land)
What is the value for woodlands relief purposes?
The timber
What are alternative reliefs for woodlands?
1) Business Property Relief (woodland used commercially)
2) Agricultural property relief (if used for agricultural use)
What is quick succession relief?
Reduces double taxation where IHT charged twice on same asset within 5 years
What are conditions for quick succession relief?
Deceased received gift or inheritance within 5 years of death and IHT payable on original transfer AND deceased’s own death estate
What is the effect of quick succession relief?
Crediting previously paid IHT against new charge
What are the relief rates based on for quick succession relief?
Timing since original IHT charge
What are the different relief rates based on time for quick succession?
1) Within 1 year – 100%
2) 1-2 years – 80%
3) 2-3 years – 60%
4) 3-4 years – 40%
5) 4-5 years – 20%
