Diego died on 20 November 2021.His first lifetime gift on 4 May 2015 was to a trust and this resulted in a grosschargeable transfer of £360,000. This is after deducting all available exemptions.On 6 March 2017, Diego made a gift to his grandson of 5,000 out of the 14,000 £1ordinary shares he owned in Pedazo Ltd, an unquoted investment company. Thiswas a wedding gift on the occasion of his grandson's marriage. Pedazo Ltd has anissued share capital of 20,000 £1 ordinary shares. On 6 March 2017, each share in amajority holding (over 50%) was worth £12.50, and each share in a minority holding(50% or less) was worth £8.70.On 8 January 2019, Diego gave some antique furniture to his granddaughter. Thefurniture was valued at £58,000 at the date of the gift.Diego's assets at the date of his death were valued at £798,700. His funeralexpenses amounted to £3,700. Under the terms of his will, Diego left £655,000 to hiswife, a specific legacy of £100,000 to his daughter, and the residue of the estate tohis grandson.For Inheritance tax purposes, what was the amount of the transfer of value (before taking accountof any exemptions) of Diego's gift of 5,000 ordinary shares in Pedazo Ltd on 6 March 20177£

Gift Tax: The gift tax prevent the individual who are transferring their property or cash as a gift…

He Brat fetime pilt on 4 May 2015 was to a trust and this resulted in a gross changeable transfer of £300,000. This is after deducting all available exemptions. On 6 March 2017, Diego made a gift to his grandson of 5,000 out of the 14,000 £1 ordinary shares he owned in Pedazo Ltd, an unquoted investment company. This

He Brat fetime pilt on 4 May 2015 was to a trust and this resulted in a gross changeable transfer of £300,000. This is after deducting all available exemptions. On 6 March 2017, Diego made a gift to his grandson of 5,000 out of the 14,000 £1 ordinary shares he owned in Pedazo Ltd, an unquoted investment company. This

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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