IHT Revision Notes

Question 1

when do you claim DTR on o/s assets?

Answer 1

only when they explicitly disclose that asset was taxed overseas

then DTR is the lower of:
- overseas tax
- UK tax on overseas asset

Question 2

how is UK tax on overseas calculated?

Answer 2

calculate the average IHT rate (IHT liability/chargeable amount)

multiply the rate by the o/s asset

Question 3

life assurance valuations?

Answer 3

• own life = proceeds
• other life = mv
• in trust = do not include

Question 4

how is IHT on specific legacy calculated?

Answer 4

tax paid * relevant% * (increase in transferee estate/decrease in transferor estate + tax borne)

the tax borne element only applies if they explicitly mention the tax executors have paid