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Hi Jilly,
On 14 November 2023, Jane made a cash gift to a trust of £800,000 (after deducting all available exemptions).
here what are the total exemptions we should presume ??
the AE for 23/24 3000
and AE for 22/23 3000and what else?
Thanks,
NRB?
These are the exemptions unless there is anything else from the question?Hi Jilly ,
Then why sometime we have to gross up the taxable amount before apply the tax rate
like in the model answer of this question
Lifetime IHT due (£475,000 x 20/80) (donor pays tax) 118,750Why we have to gross up ?
Thanks
Explanation
£ £
Chargeable amount 800,000
NRB at date of gift (2023/24) 325,000
(325,000)
Taxable amount 475,000
Lifetime IHT due (£475,000 x 20/80) (donor pays tax) 118,750I need to ask – have you watched the lecture on this topic – it is clearly covered there and in the chapter!
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