Inheritance Tax Flashcards
How do we remember the lifetime transfer table layout?
To eat a crab near eastbourne is gross
What is the small gift exemp amount? What happens is gift is ove this?
Up to £250 is exempt, if over then all goes in the lifetime transfer table
How are lifetime tranfers between spouses dealt with?
Do not go in table as this is exempt from IHT
Nanan donated money to the charity how is this dealt with?
Charity donations are exempt from IHT od not go in table
Nanan donated money to the Conservative party how is that dealt with?
Political donations are exempt from IHT do not go in table
How much and from whom can gift funds for marriage and not have to go in lifetime transfer table?
Parent can gift £5,000 / Grandparent can gift £2,500 / Anyone else £1,000
What is the AEA amount per annum?
£3,000
If a CLT trasnfer is made what rate of IHT is paid on this in the lifetime transfer table?
25% if paid by donor or 20% if paid by donee
How does the NRB 325,000 work in the lifetime trasnfers table?
For every CLT row we need to apply the 325,000 NRB - NRB used in previous 7 years from that CLT row
On th death estate are estate administration costs deductible?
No
How much is the RNRB?
175,000
What are the conditions to get RNRB?
Must be a property that was lived in at some point by deceased (overseas or UK) and is going to children/grandchildren (direct descendants)
Can spouse use unused RNRB of spouse?
Yes can use unsured RNRB of dead spouse
If Nanan died and property went to Dad but gross chargeable estate was over £2million (in this case the GCE is £2,120,000) what is the tapered RNRB?
If gce IS OVER £2m the RNRB is tapered by 175000 - (0.5 x GCE - 2M). In this case 175,000 - (0.5 x 2,120,000-2,000,000)=115,000
What is the gift with reservation of benefit? Give 2 examples.
A gift with reservation of benefit is a lifetime transfer of a property (that the donor still uses/lives in) or shares (that donor still entitled to a dividend from them)
