Introduction to Exemptions and Reliefs

Question 1

What might IHT arise from?

Answer 1

1) Lifetime transfers (a. PET, b. LCT)

2) Death

Question 2

What are exemptions?

Answer 2

Gifts fully exempt from IHT

Question 3

Do exemptions affect NRB?

Answer 3

No

Question 4

What are reliefs?

Answer 4

Apply to certain types of property (business or agricultural)

Question 5

What are common exemptions?

Answer 5

1) Spouse exemption
2) Charity exemption
3) Family maintenance exemption
4) Annual exemption
5) Small gifts allowance

Question 6

What exemptions and reliefs apply to lifetime transfers only?

Answer 6

1) Family maintenance exemption
2) Small gifts exemption
3) Marriage exemption
4) Normal expenditure out of income
5) Taper relief

Question 7

What exemptions and reliefs apply to death estate only?

Answer 7

Quick succession relief

Question 8

What exemptions and reliefs apply to both lifetime and death?

Answer 8

1) Charity exemption
2) Business property relief
3) Agricultural property relief
4) Political party exemption
5) Heritage / gift exemption