Hi, Just want to check for inheritance tax regarding exempt transfer for spouse / civil partner - is it necessary for us to know exactly what constitutes as a civil partner ie living together for so many years or will we also just be told in the exam "civil partner" Thank you.
Ask the Tutor ACCA TX-UK
INHERITANCE TAX - CIVIL PARTNER
You will be informed about either a spouse or civil partner.
Thank you tax tutor! I have another two questions, not related to the above query though! For the 27,000 figure which is in relation to adjusted net income does this only relate to the age of individuals, I am not sure about this. Also do we have to memorise the figures related to small gifts, the 3000 annual allowance for inheritance tax and related to property income the 4250 (if I recall correctly) rent a room relief as I looked at past exam papers and did not see any mention of these at the front. Thanks!
The income limit of 27,000 is only relevant in computing the restriction to the personal age allowances and yes I'm afraid that you do have to learn those other figures!
Thank you so much tax tutor, wish me luck! ; )
Sir, this is a general question. Are CLT and donations made under gift aid scheme the same?
Thanks
No - CLT's are transfers into trust and gifts to charity are exempt transfers for IHT
Sir, what is endowment mortgage and how does it affect death tax?
An endowment mortgage has within it a life policy which would automatically pay off the mortgage on the death of the taxpayer. Thus in an exam question we do not deduct an endowment mortgage from the value of the property when including it in the computation of the chargeable estate at death
Thanks a lot sir :)
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