IHT

Question 1

IHT consequences of gifting to spouse if you are not UK domiciled?

Answer 1

“SPOUSE EXEMPTION
Even if spouse also non-dom”

Question 2

Inherit a business?

Answer 2

BPR!

Question 3

Inherit a holiday let?

Answer 3

BPR (Rules!)

Question 4

In terms of international aspects, who pays IHT?

Answer 4

DOMICILED in UK

Question 5

When do you get BPR?

Answer 5

“50%(?)
Unquoted”

Question 6

What does it suggest if an executor is contacting you?

Answer 6

Suggests that the additional tax due will be your responsibility and would suggest that your grandfather has not made any provision for the tax to be met by the estate.

Question 7

CLT terminology

Answer 7

“‘All discretionary trusts are relevant property trusts which mean that when an individual sets up a trust it is a chargeable lifetime transfer.
If they have not made any other lifetime transfers the transfer would fall within the nil rate band of £325,000 and IHT would be charged at 0%.’ (Have to look back 7y! (Can’t just have one meeting…))
I.e. CLT CHARGEABLE IF NRB USED UP IN PREVIOUS 7Y”

Question 8

CLT: Who pays the higher (25%) tax?

Answer 8

The DONOR (Not trustees)

Question 9

What to watch out for if BPR given as PET?

Answer 9

Still have to own the business assets at time of death

Question 10

IHT BPR

Answer 10

“Unquoted trading company shares at 100%
Unincorporated business at 100%
Quoted trading company shares at 50% (if control co)
L&B/P&M at 50% (if used in donor’s business)

Owned more than 2y