This is a sample of our (approximately) 5 page long Tax notes, which we sell as part of the Private Client Notes collection, a 80-90% package written at Multiple Institutions in 2015 that contains (approximately) 159 pages of notes across 32 different documents.
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The following is a plain text extract of the PDF sample above, taken from our Private Client Notes. This text version has had its formatting removed so pay attention to its contents alone rather than its presentation. The version you download will have its original formatting intact and so will be much prettier to look at.
Elective: Private Client
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
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 in the YEAR of the gift Tax at 20% if it exceeds the NRB
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]"
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:
First PET / LCT within the 7 year period - go back 7 years. Any LCT in that period will effect the cumulative total. "This LCT is not reassessed but may be relevant to calculating the cumulative total for subsequent gifts. Cumulative total = £x"
PETs: "this PET was made within 7 years of death and must be assessed for tax. The cumulative total = £x + £y WHO pays?
LCTs: "It was made within 7 years of death so should be re-assessed at full rate applicable to death.
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