- This topic has 2 replies, 2 voices, and was last updated 8 years ago by
.
- Posts
Q- Eric makes a gift of £336,000 to a trust on 10 July 2015.the trustees agree to pay the tax due. Calculate the lifetime tax payable by the trustees if Eric has made
A) a lifetime chargeable transfer of value of £100,000 in August 2007
B) a lifetime chargeable transfer of value of £100,000 in August 2008
C) a lifetime chargeable transfer of value of £350,000 in August 2008Problem- is this answer they showed nil rate band of £325,000 . But I Cnt figured out from where it come out.
Thanks
Q-Trevor makes a gross chargeable transfer of value of £207,000 in dec 2002. He then makes a gift to a trust of shares worth £206000 on 15 November 2008.the trustees pay the lifetime tax due. The nil rate band in 2008/09 was £312000.trevor dies September 2015. The shares held by the trustees were then worth £500,000.
compute-the death tax (if any) payable on the lifetime transfer in November 2008.Problem- dear sir, in this question they already give us the nil rate band but in the answer they took the nil rate band £325000 while the given nil rate band is £312000.
I can’t understand y they dint use £312000.they did £325000-207000=£118000.Thanks
(1) In 2015/16 the nil rate band (NRB) is £325,000 as shown on your tax rates and allowances provided to you in the exam
(2) In this example you are asked to compute the IHT payable on DEATH, hence you use the NRB in force at the date of death which IS £325,000.
Have you listened to the lectures on IHT?
- You must be logged in to reply to this topic.