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
Lifetime tax payable is calculated on a cumulaive basis and this is how i solved it
GROSS TAX NET
100,000 - 100,000
330,000
-----------
430,000
430,000-325,000 *20% = 21000
However the ans is 1000
Ask the Tutor ACCA TX-UK
inheritance tax
The earlier CLT is more than 7 years before the current CLT so is ignored in computing the current tax figure
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