WAE - weak areas

Question 1

What does cumulative total mean (step 1 for both lifetime and death IHT)

Answer 1

The cumulative total at a given date = total chargeable value of the chargeable transfers made in the 7 years before that date

Question 2

Can solicitors fees for acting in administration be deducted for IHT purposes

Answer 2

No - post-death expense

Question 3

What must be done re unmarried co-owner’s share of jointly held property

Answer 3

Half it and deduct 10%

Question 4

Taper relief

Answer 4

20% deducted from over 3 years pre-death (so 80% between 3 and 4 yrs) etc.

Question 5

What is available NRB

Answer 5

Full NRB less cumulative total

Question 6

Marriage exemptions

Answer 6

• £5,000 to child
• £2,500 to grandchild / great-grandchild
• £2,500 by one spouse to the other
• £1,000 any other case

Question 7

Conditions for normal expenditure out of income

Answer 7

Exempt if made:
* From donor’s income (not capital)
* As part of a normal / regular pattern of giving, and
* Does not affect the donor’s standard of living

Question 8

Fees re grant of probate

Answer 8

£300 probate fee and £1.50 per sealed copy

Question 9

What else can PRs now apply for other than a commercial loan?

Answer 9

Grant of representation on credit - only where impossible for PRs to pay any / all tax before grant is issued (still must pay by deadline to avoid interest)