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Respected tutor:
1# If a person inherits (PET) asset and afterward sells it(after the death of donor),
In my kit there is a question in which cgt= sale-cost(MV at transfer)-inheritance tax, I want to ask what would happen if the asset was inherited through death estate rather than the PET!2# In gift with reservation IHT:
If a person gifts the house but continued to live there till death than whether we will put asset in death estate or is it a PET!
3# If A has 100% holding of B (both are companies):
A =. Trade profit are $100000 and gains of $1000
B =. Trade profit are $150000 and gains of $49000Is it possible to transfer $49000 gains of B to A, hence saving tax at
29.75%4# When company writes off debt of an employee than will it be allowable deduction for tax purposes?
This is a P6 question – this is an F6 forum. I will answer the question anyway
If you inherit an asset your cost for CGT is probate value
We would include in death estate if this gives a higher IHT liability than treating ad a PET under the gift with reservation rules
Yes we could transfer the gain to the company paying at the lower corporation tax rate
Writing of a loan made to an employee is a non trade debt so is not allowable for trading profit but is allowed as a deduction against interest income for companies. For individuals there is no tax relief
Hope this helps
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