Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

IHT Payable

Forums › ACCA Forums › ACCA TX Taxation Forums › IHT Payable

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 16, 2015 at 2:19 am #282723
    Anonymous
    Inactive
    • Topics: 19
    • Replies: 15
    • ☆

    Dee Ceased died on 1 March 2015 with a Chargeable Estate of £500,000 having made the following lifetime gifts:

    1 October 2002 £100,000 cash to son
    1 June 2003 £278,000 cash into a trust
    1 September 2009 £296,000 cash to daughter

    I need to calculate IHT payable on the lifetime gifts when they were made assuming that Dee paid any lifetime tax due.

    How much Annual Exemption will be used and why?

    Thanks

    November 23, 2015 at 12:43 pm #284712
    shab470
    Member
    • Topics: 5
    • Replies: 21
    • ☆

    Hi Selimdu

    01/10/2002 01/06/2003 01/09/2009
    PET CLT PET
    100,000.00 278,000.00 296,000.00
    AE 2002/03 -3,000.00
    AE 2001/02 -3,000.00
    AE 2003/04 -3,000.00
    AE 2009/10 -3,000.00
    AE 2008/09 -3,000.00

    94,000.00 275,000.00 290,000.00

    IHT Payable on Life Time Gifts

    (255,000-94,000)= 161,000 @ 0% =
    114,000 @ 20% = 22,800.00

    So the Gross transfer will be (114,000 @ 25% = 28,500 + 275000= £ 303,500

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.