WE 11 Lifetime reliefs

Question 1

What are the lifetime reliefs

Answer 1

• Charity
• Spouse
• Family maintenance
• Marriage
• Small gifts Allowance
• Normal expenditure from income
• Annual Exemption
• BPR
• APR
• Taper

Question 2

What is the spouse relief?

Answer 2

• Both parties need to be UK dom
• Does not apply to cohabitees
• Only applies to life interest trusts if Spouse is life tenant NOT remainder beneficiary
• Can be conditional as long as condition is met within 12 months

Question 3

What is Annual exemption relief?

Answer 3

• £3,000 per year, can carry fwd from last year
• Can be used with other reliefs

Question 4

What is family maintenance relief

Answer 4

Maintenance if made to;
- Spouse (domicile doesn’t matter)
- Minor child (either spouse) for maintenance, education, training
- Adult child (either spouse) if in full time education or training
- Dependant relative to make reasonable provision for care

Question 5

What is the Small Gifts allowance?

Answer 5

• £250 per year per recipient
• can’t be combined with any other relief
• if limit of £250 exceeded, exemption doesn’t apply at all.

Question 6

What is the marriage exemption?

Answer 6

Relief is per Donor (so father can give £1k to son and £5k to daughter-in-law)
- £5,000 by parent
- £2,500 by grandparent
- £2,500 by partner
- £1,000 anyone else

Question 7

At what time does the marriage exemption apply?

Answer 7

Must be made for a specific marriage
- Contemporaneously
- Before, but conditional on marriage
- After but to satisfy an obligation that arose before

Question 8

What is the normal expenditure exemption?

Answer 8

• made out of income
• normal/regular pattern of giving
• standard of living unaffected

Question 9

What is the charity exemption?

Answer 9

• Can be conditional as long as condition is met within 12 months
• Charity must be in UK or EU

Question 10

What is the political party exemption?

Answer 10

• 2 MPs elected
  OR
• 1 MP + 150,000 votes