Inheritance Tax (8)

Question 1

Does inheritance tax come before capital gains tax?

Answer 1

Yes, so there’s automatic gift relief

Question 2

Transfer of value calculation?

Answer 2

Before - After

Question 3

A gift to husband of £20000?

Answer 3

Exempt.

Question 4

Gifts of £200 each two two friends as a Chrstimas gift?

Answer 4

Exempt

Question 5

A gift to her daughter of £2000?

Answer 5

PET

Question 6

A wedding present to her son of £5500?

Answer 6

PET

Question 7

A gift to her nephew as a wedding gift of £8000?

Answer 7

PET

Question 8

A gift to a trust of a valuable painting worth £100000?

Answer 8

CLT

Question 9

When there’s an exemption?

Answer 9

Only use the amount of that exemption which brings it down to 0

Question 10

Current year in computation?

Answer 10

Always do current year first

Question 11

When does PET become exempt?

Answer 11

Live for seven years, if not it becomes chargeable in seven years

Question 12

If there’s an AE unused?

Answer 12

It is brought forward to the next year

Question 13

What is diminution?

Answer 13

Value of estate before transfer - value of estate after transfer

Question 14

What is the amount of a marriage exemption (parents bride)?

Answer 14

£5000

Question 15

What is the amount of a marriage exemption (grandparent)?

Answer 15

£2500

Question 16

What is the amount of a marriage exemption (nieces and nephews)?

Answer 16

£1000

Question 17

When looking at NRB?

Answer 17

Look back 7 years for gross chargeable transfers in those 7 years which reduce the NRB

Question 18

Lifetime tax rate is done at?

Answer 18

The end of the computatuon

Question 19

How to calculate gross amount?

Answer 19

Chargeable amount + lifetime tax due

Question 20

Figure that’s used in seven years?

Answer 20

The gross amount

Question 21

If used in seven years?

Answer 21

No lifetime tax due is added to the chargeable amount

Question 22

Does PET have lifetime tax?

Answer 22

No

Question 23

When there’s NRB?

Answer 23

Look back 7 years

Question 24

Is PET deducted from NRB?

Answer 24

FUCK NO

Question 25

When is PET taxable to IHT?

Answer 25

As a result of death

Question 26

When is a PET completely exempt at death?

Answer 26

No lifeitme tax or additional tax on death

Question 27

What happens to a CLT at death?

Answer 27

No longer taxable but is a chargeable transfer

Question 28

Is tax paid deducted from IHT payable in a PET?

Answer 28

No