IHT

Question 1

What’s the value that’s used for gifts

Answer 1

Value of gift when gifted

Question 2

What doesn’t count as a transfer of value

Answer 2

A bad business deal with no gratuitous intent, which results in a reduction in the value of estate, is not a transfer for IHT

Question 3

Lifetime lifetime tax is on…

Answer 3

CLTs only

Question 4

Fall in value relief. Impact

Answer 4

The lower value used (if applicable) has no impact on the GCT used when calculating the available NRB for subsequent transfers subject to death tax.

Question 5

FIVR doesn’t apply to what

Answer 5

Wasting chattels
Plant and machinery

Question 6

In general what are all transfers valued at

Answer 6

Market value at the time of transfer

Question 7

Death estate

Answer 7

All assets owned at the time of death less
Debt and funeral expenses

Debts don’t include gambling
Do include taxes liable

Question 8

Charitable legacy

What is Net charitable estate

Answer 8

Value of estate after all reliefs + exemptions and NRB

I.E.
Taxable estate, but without deducting the charitable legacy and residence nil rate band.

Question 9

Transfer of unused NRB

Answer 9

Increase in NRB can be used in both lifetime transfers and death estate

Question 10

RNRB

Net value of property

Answer 10

MV less any other liabilities

Question 11

Tapering of RNRB

What’s the threshold?

Answer 11

Estates over £2 million.

After deducting all liabilities and debts, BEFORE deducting

Reliefs such as spouse or charity or BPR