Inheritance tax

Question 1

when does a charge to IHT tax arise

Answer 1

lifetime transfers

death estate ie gifts made on death

Question 2

how much is exempt from tax as a gift from parent in consideration of marriage

Answer 2

5000

Question 3

how much is exempt from tax as a gift from lineal ancestor in consideration of marriage

Answer 3

2500

Question 4

how much is exempt from tax as a gift from anyone else in consideration of marriage

Answer 4

1000

Question 5

what is the small gift exemption

Answer 5

250 per donee

Question 6

what is the annual exemption

Answer 6

3000

Question 7

can you carry forward unused exemption

Answer 7

yes for one year

Question 8

in what order do you use exemptions

Answer 8

current year, then bought forward

Question 9

what is a potentially exempt gift

Answer 9

a gift that is exempt from IHT but is chargeable if the donor dies within 7 years

Question 10

what is a CLT

Answer 10

Chargeable lifetime transfer

Question 11

two types of lifetime transfers

Answer 11

PETs

CLTs

Question 12

what is CLT

Answer 12

any lifetime transfer that is not potentially exempt

Question 13

what is the lifetime tax proforma

Answer 13

gift

• AE
• AE b/f

NRB at date of gift
- CLTS in last 7 years of gift

tax of sum @20% or 20/80

Question 14

if the donee pays the tax what is the tax rate

Answer 14

20

Question 15

if the donor pays the tax what is the tax rate

Answer 15

25

Question 16

how do you allocate the AE

Answer 16

first gift in the year

Question 17

what is the nil rate band for CLTs

Answer 17

325000 less any previous clts in 7 years

Question 18

whats the gross value of a gift if a donor pays tax

Answer 18

gift - all reliefs and exemptions plus tax

Question 19

whats the gross value of a gift if a donee pays tax

Answer 19

gift - all reliefs and exemptions

Question 20

how much is death tax

Answer 20

40%

Question 21

how is dath tax paid by

Answer 21

donee of the gift

Question 22

what is taper relief

Answer 22

if gifts were made between 3 and 7 years of death, only a percentage of the IHT calculated will be collected

Question 23

what is the residence nil rate band

Answer 23

additional nil rate band used on death estate

Question 24

when is RNRB available

Answer 24

when the person died on or after 06/04/2017

when the person owned a home

the home passes onto direct decendants

Question 25

how much is RNRB

Answer 25

the lower of:

150000
or
transferred RNRB from a souse

Question 26

what is the value of the main residence of the deceased

Answer 26

is the value- mortgage repayments or interest on the mortgage

Question 27

can NRB be transferred on death of a spouse if they dont use it all

Answer 27

yes

Question 28

can RNRB be transferred if the second spouse dies after 06/04/2017

Answer 28

yes of 150000 regardless if they have a house

Question 29

when is tax due on a CLT if made between 06/04 and 30/09

Answer 29

due by 30 April following end of tax year

Question 30

when is tax due on a CLT if made between 01/10 and 05/04

Answer 30

6 months from the end of the month of transfer

Question 31

when is death tax due on lifetime gifts

Answer 31

6 months from the end of the month of death

Question 32

when is death tax due on the estate

Answer 32

6 months from end of month of death