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this is what is given in study hub.
£5,000 for a gift by a parent;
£2,500 for a gift by either a more remote ancestor (e.g. grandparent) or the other party to the marriage;
£1,000 for a gift by anyone else (i.e. other relatives and friends).which category would gift from fiance’s parent fall under?
Think it through…
£5,000 gift by a parent.
So the bride’s parents can give £5,000 each and the groom’s parents can give £5,000 each (total of up to £20,000 from the parents of the couple getting married).
this is another iht qtn.
Kendra owns the following assets:A property valued at £970,000. The property is no longer occupied by Kendra, but would qualify for the residence nil rate band. If it were disposed of during the tax year 2024-25 the disposal would result in a chargeable gain of £174,000. Kendra has made other disposals in the year utilising the annual exempt amount.
Building society deposits of £443,000.
A life assurance policy on her own life. The policy has an open market value of £210,000, and proceeds of £225,000 will be received following Kendra’s death.
None of the above valuations are expected to change in the near future. The cost of Kendra’s funeral will be £14,000.Under the terms of her will, Kendra has left her entire estate to her children.
The nil rate band of Kendra’s husband was fully utilised when he died ten years ago.
The nil rate band for the tax years 2009–10 onwards is £325,000.
the qtn is how much is chargeable estate
i deducted 175k for rnrb as it said t qualifies . but in the solution they havent . y so. also here they mentioned husband’s nrb is utilised , then does that indicate that his rnrb is still left so we can use is rnrb?
also for the above qtn i mentioned instaed if the property of 970k is transfred to his children before death is any cgt payable? if so how and y? like im not understandng y will cgt arise if a gift is made
this is another iht qtn.
Kendra owns the following assets:A property valued at £970,000. The property is no longer occupied by Kendra, but would qualify for the residence nil rate band. If it were disposed of during the tax year 2024-25 the disposal would result in a chargeable gain of £174,000. Kendra has made other disposals in the year utilising the annual exempt amount.
Building society deposits of £443,000.
A life assurance policy on her own life. The policy has an open market value of £210,000, and proceeds of £225,000 will be received following Kendra’s death.
None of the above valuations are expected to change in the near future. The cost of Kendra’s funeral will be £14,000.Under the terms of her will, Kendra has left her entire estate to her children.
The nil rate band of Kendra’s husband was fully utilised when he died ten years ago.
The nil rate band for the tax years 2009–10 onwards is £325,000.
the qtn is how much is chargeable estate
i deducted 175k for rnrb as it said t qualifies . but in the solution they havent . y so. also here they mentioned husband’s nrb is utilised , then does that indicate that his rnrb is still left so we can use is rnrb?
THE CHARGEABLE ESTATE IS THE AMOUNT AFTER EXEMPTIONS BUT BEFORE DEDUCTING ANY RNRB OR NRB.
I am sure that I have been through this with you before on one of your previous questions.
As the question specifically states that the husband’s NRB was fully utilised, but it doesn’t specifically mention the RNRB, you can assume that it’s available
also for the above qtn i mentioned instaed if the property of 970k is transfred to his children before death is any cgt payable? if so how and y? like im not understandng y will cgt arise if a gift is made
As it’s a gift, market value is used as proceeds and as the full gain will not qualify for PRR there there is an amount left chargeable.
another confusion in iht i hv, in death estate when a spouse transfers to their partner , we treat that as exempt, but when it comes to calculating death estate of that same receving partner y dont we deduct the inherited estate from spouse? like shldnt it be 2 way deduction?
No, that’s not how it works.
All assets owned at the date of death, whether inherited from someone else (as an exempt legacy or otherwise) are included in the death estate.
so inherited spouse transfer is included. but a transfer to spouse made is excluded?
Exemptions are based on the RECIPIENT (donee).
Husband gives asset to wife = exempt
Wife gives asset to husband = exempt
Husband leaves asset to wife on his death = exempt
This is all because the transfers are between SPOUSES.
Wife gives asset to son OR dies and leaves asset to son = NOT EXEMPT as this is not a transfer between SPOUSES. It doesn’t matter HOW the wife acquired it.
I hope this is a simple enough explanation.
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