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Why annual exemption (current year and carry forward) ignored in below CLT?
Same case, question 3.
3. What amount of lifetime inheritance tax will be payable in respect of the lifetime gift to the trust on 27 January 2024?
Answer – £ 18,750
Working –
Net chargeable transfer 400,000
Less: nil rate band 2023-24 (325,000)
Inheritance tax (IHT) liability – 25% x (400,000 – 325,000) = 18,750Why annual exemption (current year and carry forward) ignored in below CLT?
Same case, question 3.
3. What amount of lifetime inheritance tax will be payable in respect of the lifetime gift to the trust on 27 January 2024?
Answer – £ 18,750
Working –
Net chargeable transfer 400,000
Less: nil rate band 2023-24 (325,000)
75,000
Inheritance tax (IHT) liability at 25% 18,750