IHT Flashcards
exmpt transfers?
transfers to spouse, charity, political party
marriage/civil partnership exemption?
5,000 parents
2500- g parents or gg parents
1000 any other case
small gifts
up to 250
normal expenditure out of income
must be part of regular pattern of giving, transferor must be left with sufficient income to maintain his standard of living
ae is…
the last exemption to be deducted
when is IHT on lifetime transfers due?
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)
when is death tax on gifts due?
6 months from the end of the month of death by the donee (transferee responsible)
when is iht on death estate due?
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
lineal descendants for resident band?
child or spouse of child
residents band cannot be higher than…
value of home less any debts secured on it
when is rbrb tapered?
if estate is valed at more than 2 mill- tapered by £1 for every £2 over 2 mill.
quarter up rule?
lower quoted price+ 1/4 (higher quoted price less lower quoted price)
life assuranc policy written into trust
NIL
when is property ‘related’
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
net charegable estate for charity relief?
value of estate after deducting exempt legacies and nil rate band BUT NOT rnrb and chaitable donation
BPR
sole trader or partnership
100%
BPR
shares in unquoted trading company
100%
BPR
shares in quoted trading company where donor has control
50%
BPR
assets used in the business
50%
BPR
how long must assets have been held?
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
BPR does not apply where…
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
BPR is restricted where…
there is expected assets ie. investments (not really used in the business)
net assets-invesment/net assets
APR is given as % of…..
agricultural value of the land
agricultural land and buildings owned and farmed by farmer
apr
tenanted agricultural lands and buildings
apr
controlling shareholding in a company where the company owns land and agricultural buildings
apr
what comes first apr or bpr?
apr
apr is 50% when …
tenanted, let on a pre spet 1995 lease and has more than 2 years left to run (wil prob make this fairly obvious)
ownership requirements for apr…
2 years if owned and farmed by farmer
7 years if tenanted
for bpr/apr to apply on death…
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
penalties for IHT
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
when can IHT be paid in 10 equal instalments?
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)
