IHT

Question 1

State Residence nil rate band features

Answer 1

• withdrawn at £1 for every £2 over £2m threshold
• Nothing for 2.3m estates this tax year
• Step children included
• After 7/07/2015 if you downsized still can’t include home value

Question 2

How long do you have to claim the transferable nil rate band

Answer 2

The executors or administrators of the spouse or civil partner who died last must claim the transferable nil rate band within two years after the end of the month in which the deceased died.

Question 3

How long do you have to hold AIM shares to get business relief (iht relief)

Answer 3

2 years

Question 4

How much annual exemption do you have?

Answer 4

£3k, up to a maximum of £6k if previous years weren’t used

Question 5

Matthew makes a potentially exempt transfer of £500,000 to his son, Ralph, and dies four years later. What would the position be? Who would pay the tax

Answer 5

Ralph

Question 6

Explain how you get to the 36% IHT band

Answer 6

A reduced IHT rate of 36% applies to an estate where at least 10% of the net estate is left to charity. The net estate is that remaining after deducting exemptions (but excluding the charitable legacy), reliefs and nil rate bands. The reduced rate of 36% is automatic without any need for the personal representatives to make a claim.

Question 7

How long do you have to claim the inheritable nil rate band

Answer 7

2 years of end of the month when second death occurs

Question 8

How long do you have to hold business for to get business relief

Answer 8

2 years