IHT

Question 1

IHT to Non-Dom

Answer 1

This results in an inter-spouse NRV as well as normal NRB plus RNRB.
Non-Dom can elect to be dom 2 years after death

Question 2

IHT exemptions

Answer 2

Inter-spousal
Annual exemptions (£3k) can be c/f 1 year 
Small gifts - £250
Gifts out of regular expenditure
Gifts on consideration of marriage
Gifts to charities or political parties

Question 3

Taper Relief

Answer 3

Taper relief for IHT is on the tax not the gift in excess of the NRB

Question 4

Quick succession relief

Answer 4

Net estate/gift (minus tax paid)

Gross estate/gift x IHT paid

Question 5

When is IHT paid?

Answer 5

IHT must be paid within 6 months from the end of the month when death occurred

Question 6

Transferring NRB

Answer 6

Must be claimed on 2nd death
Can be increased by the same % of the unused NRB to a max of 100%
It is not affected by a new relationship

Question 7

RNRB

Answer 7

Can’t exceed house value if less than £100k/£200k (joint)

Can only be used when property going to direct descendants

Question 8

Level Term for IHT

Answer 8

Level term assurance on estate = estate x 40% as sum assured

Question 9

Whole of Life policy in a discretionary trust

Answer 9

The value for CLT is the market value of the policy. This could be based on; surrender value, premiums paid or an actuarial valuation
Settlor can still benefit from annual exemption
Further premiums paid are also transfers but normally covered under normal expenditure exemption
A premium is chargeable to IHT if it is in excess of exemptions @ 20%

Question 10

Estate Calculation - EIS/SEIS

Answer 10

EIS and SEIS are included for the RNRB taper calculation if applicable but not included for calculating the estate