Inheritance tax Flashcards
when does a charge to IHT tax arise
lifetime transfers
death estate ie gifts made on death
how much is exempt from tax as a gift from parent in consideration of marriage
5000
how much is exempt from tax as a gift from lineal ancestor in consideration of marriage
2500
how much is exempt from tax as a gift from anyone else in consideration of marriage
1000
what is the small gift exemption
250 per donee
what is the annual exemption
3000
can you carry forward unused exemption
yes for one year
in what order do you use exemptions
current year, then bought forward
what is a potentially exempt gift
a gift that is exempt from IHT but is chargeable if the donor dies within 7 years
what is a CLT
Chargeable lifetime transfer
two types of lifetime transfers
PETs
CLTs
what is CLT
any lifetime transfer that is not potentially exempt
what is the lifetime tax proforma
gift
- AE
- AE b/f
NRB at date of gift
- CLTS in last 7 years of gift
tax of sum @20% or 20/80
if the donee pays the tax what is the tax rate
20
if the donor pays the tax what is the tax rate
25
how do you allocate the AE
first gift in the year
what is the nil rate band for CLTs
325000 less any previous clts in 7 years
whats the gross value of a gift if a donor pays tax
gift - all reliefs and exemptions plus tax
whats the gross value of a gift if a donee pays tax
gift - all reliefs and exemptions
how much is death tax
40%
how is dath tax paid by
donee of the gift
what is taper relief
if gifts were made between 3 and 7 years of death, only a percentage of the IHT calculated will be collected
what is the residence nil rate band
additional nil rate band used on death estate
when is RNRB available
when the person died on or after 06/04/2017
when the person owned a home
the home passes onto direct decendants
how much is RNRB
the lower of:
150000
or
transferred RNRB from a souse
what is the value of the main residence of the deceased
is the value- mortgage repayments or interest on the mortgage
can NRB be transferred on death of a spouse if they dont use it all
yes
can RNRB be transferred if the second spouse dies after 06/04/2017
yes of 150000 regardless if they have a house
when is tax due on a CLT if made between 06/04 and 30/09
due by 30 April following end of tax year
when is tax due on a CLT if made between 01/10 and 05/04
6 months from the end of the month of transfer
when is death tax due on lifetime gifts
6 months from the end of the month of death
when is death tax due on the estate
6 months from end of month of death
