A more recent version of these Tax notes – written by Cambridge And Oxilp And College Of Law students – is available here.
The following is a more accessble plain text extract of the PDF sample above, taken from our Private Client Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Elective: Private Client
1. Inheritance Tax [IHT] Checklist
IHT payable when the gift was made:
1. Does the gift carry with it any liability [e.g. mortgage / charge on shares]
political party 100%
Business property relief
5. 6. PET
Annual exemptions [check dates]
Equals = Value of the PET / LCT Gross up any LCT if donor is paying tax. TAX: No IHT payable The PET is ignored while Peggy is alive The value of the PET does not affect the Cumulative Total
NRB Option 1: "The LCT1 made more than 7 years before LCT 2. The PET is ignored therefore the whole NRB is available [check NRB table of that year]"
NRB option 2: "The LCT1 was made in the last 7 years before LCT2 therefore it effects the NRB available. The NRB is now [NRB of this year - cumulative total]"
NRB in the YEAR of the gift [check table]
Tax at 20% if it exceeds the NRB
NB. No taper relief at this stage Valuation issues? [10% discount]
IHT payable on LCTs / PETs at date of death:
1. Transferable NRB?
2. "x dies on DATE. The 7 year period runs from DATE"
3. NRB transferable- transfer the appropriate % proportion not used
4. Work chronologically:
Buy the full version of these notes or essay plans and more in our Private Client Notes.