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On 20 October 2018, Craig made a gift to his grandson of a residential property valued at £250,000. The gift of the property resulted in a chargeable gain of £145,000.
The value of the property is expected to increase to £300,000 by 31 December 2022.
Craig is an additional rate taxpayer. He will not make any other disposals during the tax year 2018–19, and he has not made any previous lifetime gifts. Craig has an estate valued in excess of £2,000,000 for IHT purposes.
Sir in this question if suppose creg dies on 31 dec 2022, then how would we calculate IHT saving
PET fig is 250000 which is less than NRB of 325000 thus No IHT will be payable on this PET
I do not know how to do this question further, Can you please help me
What did the question ask you to do and what in the answer did you not understand?
Basically here we have to compare IHT saving with immediate CGT.
I know CGT here will be 37324I have problem in calculating IHT saving if Creg dies on 31 dec 2022
PET fig is 250000 which is less than NRB of 325000 thus No IHT will be payable on this PET. I do not know how to proceed further in order to calculate IHT saving
The answer must have shown the computation – show me the answer given and tell me as previously requested what part of that answer you do not understand.
Thanks a lot sir for all your help in tax. I have passed it in first attempt at 70%
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