Inheritance Tax

Question 1

IHT Chargeable Person

Answer 1

Anyone with UK assets

Question 2

IHT Chargeable property

Answer 2

All worldwide property (excluding foreign assets of not UK domiciled)

Question 3

During life transfers can be regarded as

Answer 3

Exempt, PET’s or CLTs

Question 4

On Death transferred can be regarded as

Answer 4

Exempt or Chargeable

Question 5

The nil rate band

Answer 5

Cumulative 7 year period

Question 6

During life IHT

Answer 6

@ 20%

Question 7

On Death

Answer 7

40% (36% if >10% donated to charity)

Question 8

How much does IHT raise

Answer 8

£5bn (compared to £750bn raised overall by tax)

Question 9

6 exempt Transfers

Answer 9

Charity/political partner
£3000 annual exemption
Normal expenditure out of income
small gifts (£250 pa per transferee
Marriage exemptions (£5k,£2.5k,£1k)

Question 10

Can you carry forward £3000 annual exemption?

Answer 10

Yes! Only for one year

Question 11

2 PET examples

Answer 11

All gifts (To individuals and trusts for bereaved child/disabled person)
*Chargeable if donor dies <7years

Question 12

3 CLT examples

Answer 12

Definition
Gifts to discretionary trust
gifts to non-qualifying ‘Interest in possession’ trust created after 22/3/06
Lifetime IHT plus additional if die <7years