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James Iht

The document outlines the Inheritance Tax (IHT) payable due to James' death, detailing the chargeable amounts, available nil rate bands (NRB), and the resulting tax liabilities for both Potentially Exempt Transfers (PET) and Chargeable Lifetime Transfers (CLT). It discusses the advantages of making lifetime gifts, such as taper relief and fixed chargeable amounts, which can lead to tax savings. Additionally, it highlights the responsibilities of James' daughter, trustee, and personal representatives regarding the payment of IHT on gifts and the estate.

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jtom3249
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9 views3 pages

James Iht

The document outlines the Inheritance Tax (IHT) payable due to James' death, detailing the chargeable amounts, available nil rate bands (NRB), and the resulting tax liabilities for both Potentially Exempt Transfers (PET) and Chargeable Lifetime Transfers (CLT). It discusses the advantages of making lifetime gifts, such as taper relief and fixed chargeable amounts, which can lead to tax savings. Additionally, it highlights the responsibilities of James' daughter, trustee, and personal representatives regarding the payment of IHT on gifts and the estate.

Uploaded by

jtom3249
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A)ans

IHT Payable as a result of James death

Column 1 PET 23/24 CLT 23/24


GROSS CHargeable amount 414000 260000
less: Available NRB 296000 0
NRB at the date of death 325000 325000
less:GCT upto 7 years pre gift 29000 443000
Taxable amount 118000 260000
IHT payable @ 40 % 47200 104000
less: Taper relief 0 0
less:IHT paid on lifetime 0 0
IHT payable on death 47200 104000

IHT PAYABLE ON DEATH ESTATE

Chargeable estate 870000


less:Available NRB 0
NRB at the date of death 325000
less:GCT upto 7 years pre death 674000
Taxable amount 870000
IHT Payable on death 348000

B)ans
since james already knew that the estate will be ultimately transferred to the cousin, so if he had directly transferred

c)ans
the advantages for person to make lifetime gifts even when such gifts are made within 7 years of death are
1)taper relief are available
2)the chargeable amount is fixed meaning that even if there is a rise to the value ,the chargeable amount is same
3)arko tax saving wala ta bujina dai
IN case of PET and CLT inheritance tax, james daughter and trustee will be responsible for the payment res
IN CASE of IHT on death estate, Personal representatives of james estate will be responsible for the payment

so if he had directly transferred the estate to the nephew there are some benefits,like the double IHT can be eliminated as a re

in 7 years of death are

e chargeable amount is same


sible for the payment respectively.
sible for the payment

can be eliminated as a result the nephew may receive greater portion of the estate.

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