IHT

Question 1

Quick Succession Relief (QSR)?

Answer 1

(Gross Estate - Tax)/ Gross Estate x Tax
(Net estate/ Gross estate) x Tax

Relief:
1 - 2 years - 80% relief
2 - 3 years - 60% relief
3 - 4 years - 40% relief
4 - 5 years - 20% relief
5 years + 0% relief

Question 2

Taper relief?

Answer 2

0 - 3 years	     100%
3 - 4 years		  80%
4 - 5 years		  60%
5 - 6 years		  40%
6 - 7 years         20%
7+   years             0%

Question 3

Pre owned asset tax?

Answer 3

POAT is an income tax charge on assets previously owned by the donor
Where market rent is not paid, the cash value of the benefit is based on the market rental less any rent actually paid
There will be no tact to pay if the cash value is less than £5,000 per annum
The POAT can be avoided by opting for the gift to be covered by the GWROB/ completing the IHT500 or by paying the full market rent for the use of the gifted asset

Question 4

BPR?

Answer 4

Business property has to be owned for 2 years
•Must be a trading company
•100% relief for
–Interests in unincorporated businesses
–Shareholdings of any size in Unquoted & AIM companies
•50% relief for
–Controlling shareholdings in fully listed companies
–Land, buildings, plant, machinery used in the business