Hello Sir,
this question is from BPP mock exam and i have given the question and answer below.
I have a doubt as to why we do not deduct AE from 158000 that was transferred on 12th aug 2015. If we deduct AE it should be 152000 as we get 2 year AE available.
Q) Dylan put $270,000 into a trust on 2 February 2018. He had previously given $200,000 to his brother on 24 October 2013 and had made another gift into a trust on 12 August 2015 of which the gross chargeable transfer was $158,000.
How much lifetime tax is payable on the gift on 2 February 2018?
answer:-
The correct answer is: $24,250
2.2.18 CLT $270000
AE 17/18 -3000
16/17 b/f -3000
Nil band @ 17/18 325000
Less GCT < 7 years from date of gift (158000)
answer :- 97,000 x 20/80 24,250
Ask the Tutor ACCA TX-UK
inheritance tax question.
Look at section 7 of the IHT chapter within the OT notes. You have to read carefully the wording in the question and understand what that means - the question gives you the amount of the "chargeable transfer" made on that date NOT the transfer of value!
The chargeable transfer is AFTER deducting any available AE's
Thank you for your reply Sir.
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