POAT Flashcards
1
Q
When was POAT effective from?
A
From 2005/06 and applies to individuals who continue to receive benefits from certain assets previously owned after 17th March 1986 but since given away.
2
Q
What assets does POAT apply to?
A
Land
Household and Personal goods
Intangible property or cash, stocks and shares and insurance policies
3
Q
What does POAT aim to tackle?
A
Schemes that try to get round the Gift with Reservation Rules
4
Q
How is the charge applied ?
A
It applies to benefits and results in an income tax charge at your highest marginal rate.
Where the asset exceeds £100,000, there is an annual tax during lifetime @ 5% pa
IHT is only chargeable above £325k
