IHT

Question 1

exmpt transfers?

Answer 1

transfers to spouse, charity, political party

Question 2

marriage/civil partnership exemption?

Answer 2

5,000 parents
2500- g parents or gg parents
1000 any other case

Question 3

small gifts

Answer 3

up to 250

Question 4

normal expenditure out of income

Answer 4

must be part of regular pattern of giving, transferor must be left with sufficient income to maintain his standard of living

Question 5

ae is…

Answer 5

the last exemption to be deducted

Question 6

when is IHT on lifetime transfers due?

Answer 6

if clt made between 6 april and 30 sept then on 30 april in following year
if made between 1 oct and 5 april- 6 months from the end of the month of the gift (transferor responsible)

Question 7

when is death tax on gifts due?

Answer 7

6 months from the end of the month of death by the donee (transferee responsible)

Question 8

when is iht on death estate due?

Answer 8

payable by executors (suffered by residual legatee)/personal representativrs
IHT and return due 12 months from the end of the month of death- but interest is chargeable from 6 months from the end of month of death

Question 9

lineal descendants for resident band?

Answer 9

child or spouse of child

Question 10

residents band cannot be higher than…

Answer 10

value of home less any debts secured on it

Question 11

when is rbrb tapered?

Answer 11

if estate is valed at more than 2 mill- tapered by £1 for every £2 over 2 mill.

Question 12

quarter up rule?

Answer 12

lower quoted price+ 1/4 (higher quoted price less lower quoted price)

Question 13

life assuranc policy written into trust

Answer 13

NIL

Question 14

when is property ‘related’

Answer 14

held by a pouse, held within previous 5 years by charity or political party as a result of a transfer made by the transferor or their spouse

Question 15

net charegable estate for charity relief?

Answer 15

value of estate after deducting exempt legacies and nil rate band BUT NOT rnrb and chaitable donation

Question 16

BPR

sole trader or partnership

Answer 16

100%

Question 17

BPR

shares in unquoted trading company

Answer 17

100%

Question 18

BPR

shares in quoted trading company where donor has control

Answer 18

50%

Question 19

BPR

assets used in the business

Answer 19

50%

Question 20

BPR

how long must assets have been held?

Answer 20

2 years BUT if replacing another qualifying asset - can combine them to make 2 years
also combined for spouses transfers
where there are succcessive transfers one of which was on death and the original transfer qualified for rleief

Question 21

BPR does not apply where…

Answer 21

business consists of mainly or wholly dealing in securities, stocks, shares, land, buildings or making wholly investments
OR
if there is a contracts in place to sell the property

Question 22

BPR is restricted where…

Answer 22

there is expected assets ie. investments (not really used in the business)
net assets-invesment/net assets

Question 23

APR is given as % of…..

Answer 23

agricultural value of the land

Question 24

agricultural land and buildings owned and farmed by farmer

Answer 24

apr

Question 25

tenanted agricultural lands and buildings

Answer 25

apr

Question 26

controlling shareholding in a company where the company owns land and agricultural buildings

Answer 26

apr

Question 27

what comes first apr or bpr?

Answer 27

apr

Question 28

apr is 50% when …

Answer 28

tenanted, let on a pre spet 1995 lease and has more than 2 years left to run (wil prob make this fairly obvious)

Question 29

ownership requirements for apr…

Answer 29

2 years if owned and farmed by farmer

7 years if tenanted

Question 30

for bpr/apr to apply on death…

Answer 30

must still own the property and it must qualify
if gift was a pet- no bpr at all- for cumulation purposes value of gift is value wihtout bpr
if clt- value is after deducting bpr/apr

Question 31

penalties for IHT

Answer 31

immediate 100 penatly
daily penalties of up to 60 days afetr failure to deliver account have been declared by a court of the tribunal
after 6 months a further 100 penalty
after 12 months further penalty of 12000

Question 32

when can IHT be paid in 10 equal instalments?

Answer 32

land and build, unquoted shares and securities, a business of interest in a business
first payment date is the due date if it were to be paid in one amount ( 6 months end of month of death for death estate)