Inheritance tax (UK)
Inheritance tax can arise on a death estate and on certain lifetime transfers, subject to statutory exemptions, reliefs, thresholds and timing rules. Some lifetime gifts can become chargeable if death occurs within the applicable period. Compute liability using the relevant circumstances and law for the assessment year; the reduction of tax by taper relief is not the same as reducing the value of every gift.
Worked example
An individual makes a lifetime gift and later dies. The executor considers the type and timing of the transfer, available exemptions and the applicable tax rules when assessing the estate.
Common mistake
Assuming that every gift is immediately taxable or that taper relief automatically reduces the transferred value.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |