IHT and account Flashcards
When is IHT400 not needed?
When the estate is excepted
What are the 2 types of excepted estate?
- low value - below (T)NRB
- exempt
What is an exempt estate? What are the additonal factors?
After debts, spouse/charity exemptions estate is below the (T)NRB
Additional factors:
i. No GROB
ii. Foreign assets cannot exceed £100k
iii. Only 1 trust and cannot exceed £250k (unless passing to spouse)
iv. Specified transfers cannot exceed £250k
v. No claim for RNRB
When is the deadline to submit accounts?
12 months from the end of the month in which death occurred
When is the deadline to pay IHT?
6 months from the end of the month in which death occurred
Who should sign off on the estate accounts? (2)
PRs and residuary beneficiaries
How can you make changes to estate after submission of IHT400? Who must sign it?
- Form C4
- appropriate representative
What is the main consequence on the estate of failure to pay IHT?
no grant and therefore, no distribution of estate
What part of the estate is IHT generally payable from?
residue unless contrary intention
What is the effect of the cumulative total?
reduces the available NRB
What is the cumulative total?
total chargeable transfers (minus lifetime exemptions)
Name all the lifetime ONLY exemptions (6)
- family maintenance
- annual exemption
- small gifts
- normal expenditure
- marriage gift
- taper relief
Name all the death exemptions (6)
- spouse
- charity
- BPR
- APR
- woodlands relief
- QSR
How much is the annual exemption?
£3,000
How much is the marriage gift for child, in law, grandchild and other?
child = £5,000
in-law = £2,500
grandchild = £2,500
other = £1,000
