Excepted estates Flashcards
(8 cards)
when must D have died for these rules to apply?
Applies to deaths on or after 1 January 2022
what is the value of the NRB?
£325k but can be increased if they inherit spouse/CP NRB
what is a specified transfer?
chargeable transfer of cash, chattels, tangible moveable property, quoted shares or security, interest in land (unless it is subject to trust) made 7 years before death
what is a specified exempt transfer?
transfers of value years prior to death which are exempt:
o Transfers between spouses/CPs
o Gifts to charities, political parties and/or housing associations
o Maintenance funds for historic buildings etc
o Employee trusts
what are the categories of excepted estate?
low value excepted estates
exempt excepted estates
non-domiciled estates
what are the conditions for a low value excepted estate?
o D was domiciled in the UK
o The gross value of the estate (inc. jointly owned assets, specified transfers + specified exempt transfers) does not exceed the NRB + any transferred NRB
o If the estate inc. any trust assets, they are in a single trust + the gross value does not exceed £250k
o Value of foreign assets does not exceed £100k
o Chargeable value of any specified transfers does not exceed £250k
what are the conditions for exempt excepted estate?
o D was domiciled in the UK
o The gross value of the estate (inc. jointly owned assets, specified transfers + specified exempt transfers) does not exceed £3m
o The net chargeable value of the estate (after deduction of liabilities + spouse/charity exemption) does not exceed the NRB + transferable NRB
o If the estate inc. any trust assets, they are in a single trust + the gross value does not exceed £1m
o Value of foreign assets does not exceed £100k
o Chargeable value of any specified transfers does not exceed £250k
what are the conditions for a non-domiciled estate?
o D was not a long term resident in the UK at death
o D held less than £150k in assets made up of cash, bank accounts or listed stocks and shares
