Inheritance Tax (+ Resulting and constructive trusts)

Question 1

Entitelement in Constructive trust

Entitlement under constructive trust

Answer 1

A share based on what was intended by the parties or, if the parties’ express or inferred intention cannot be ascertained, the share which would be fair having regard to the whole course of dealing between the parties.

Question 2

Entitlement under resulting trust

Answer 2

A share proportionate to the financial contribution to the deposit and initial mortgage payments.

Question 3

Entitlement under proprietary estoppel

Answer 3

A share based on whatever the court assesses as being reasonable in all the circumstances taking into account the assurances made and the nature of the detriment sustained as a result of reliance on those assurances.

Question 4

Proprietary estoppel meaning

Answer 4

Stops you from going back on your word in relation to property when it would be unfair to do so

Question 5

Exemptions and Reliefs for tax purposes

Answer 5

Spoouse Exemption
Small gifts
Annual exemption (3,000)
BPR- 100% for unquoted shares if more than 2 years and trading company
50% for quoted shares if trading company, more than 2 years and have voting control

Question 6

RNRB
and NRB

Answer 6

175,000 at 0%
325,000 at 0#

Question 7

Tapering relief

Answer 7

If transferor survived for more than 3 years after making the PET
3-4 years (80%)
4-5 years (60%)
5-6 years (40%)
6-7 years (20%)