Chapter 23 Inheritance Tax TX-UK FA2023
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Also it didn’t include the £2,000 of the CLT
Example 2: Step 3 has not taken account of Taper Relief of pf 2018 PET
I think calculation for example 2 is not correct
Part 5, MCQ3: Why is the CY & PY AE not used against the 118k to create a transfer of value of 112k. Making the remaining NRB on the estate £213k?
I wonder why in MCQ1 for first gifts there was a deduction of Nil rate band, but there were no AE deductions -3000, -3000?
because the gross amount is given. AE is already deducted from it.
Example 3. insurace you took at proceeds while market value was 180k.
couple minutes before: The death estate comprises all assets held on death at their open MV at that date (known as the
probate value).
What am I missing?
see the proforma on pg. 185 in the notes. (Insurance policy proceeds…)
Why in Example 2, CLT was included for tax calcualtion since they were made also more than 7 years ago? Gifts into Trust (1 June 2012 – £336,000). Exempt: This gift is exempt from IHT because it was made more than seven years before Dee’s death (1 March 2024).
I’ve missed something here – in part 2, Illustration 3, we are told that the trust is for £400,000 but the transfer of value is £450,000? Could you explain how this £450,000 was reached?
I was wondering this too.
This should be £400,000.Even if it includes the IHT paid by Ronald the amount shown is incorrect
IHT PART 2 18:07 why is there no need to add the 65500 tax due with the chargeable amount to reach the gross c/f ? we added it in the first transaction to reach the c/f gross. why not on the last transaction ?
I have a feeling it’s because for the first CLT (2008/09) it was the DONOR who agreed to pay the IHT , and whenever the donor pays, to get to the gross chargeable transfer amount , you will add the chargeable amount + lifetime tax due. If the DONEE pays the IHT on the CLT (which is what happens in (14/15), to get to the gross chargeable transfer amount, you ONLY stick to chargeable amount and NOT add the lifetime tax due. That’s my understanding!