Inheritance Tax Flashcards
What happens if you go over the small gifts exemption in IHT?
Completely lost!
FIV relief
MV less than GCT
Except things that reduce in value anyway: Wasting chattels and P&M
Related property people
Spouse AND political party (5y) AND charity (5y)
(incl transferred by spouse)
QSR
Gross gift X (Net/Gross) X relevant %
Location of IHT asset: Shares
Company location
Location of IHT asset: Debt
Where debtor resides
Location of IHT asset: Cash
Bank branch location
Location of IHT asset: Insurance
Where proceeds payable
Location of IHT asset: Pship/Goodwill
Where business carried on
When death estate assets are situated abroad?
5% extra transfer costs allowed
Can a non-dom elect to be don for IHT purposes?
YES
I.e. worldwide assets looked at
Can’t be revoked
Lost if not resident for 4y though
When is interest on death estate tax charged?
After 6m
Can you pay IHT in instalments?
Yes (same as CGT)
10 equal annual instalments from date first ususually due
(Sell property in estate? Due then)
What happens if the business property relevant for BPR in stage 1 is no longer owned and qualifying/replaced at death?
ADD BACK AT STAGE 3
IHT deemed domicile:
Was dom last 3y or OBT
