Richard died on 11 July 2019, leaving an estate valued at £900,000. None of the transfer made on his death were exempt from IHT. He had made the following transfers during his lifetime: Date 3 May 2011 Transfer Gift to relevant property trust(tax paid by trustees) Gift to daughter Gift to son Gift to relevant property trust(tax paid by Richard) 113,000 1 July 2012 1 August 2012 10 November 2013 185,000 250,000 447,000 Required: a) Calculate the tax payable as a result of Richard's death. (Assume that there is no unused nil-rate band to be transferred from a previously deceased spouse or civil partner c) Briefly explain the procedures currently in use on IHT administration regarding the Chargeable Lifetime Transfer (CLT) and death of the deceased person.
Richard died on 11 July 2019, leaving an estate valued at £900,000. None of the transfer made on his death were exempt from IHT. He had made the following transfers during his lifetime: Date 3 May 2011 Transfer Gift to relevant property trust(tax paid by trustees) Gift to daughter Gift to son Gift to relevant property trust(tax paid by Richard) 113,000 1 July 2012 1 August 2012 10 November 2013 185,000 250,000 447,000 Required: a) Calculate the tax payable as a result of Richard's death. (Assume that there is no unused nil-rate band to be transferred from a previously deceased spouse or civil partner c) Briefly explain the procedures currently in use on IHT administration regarding the Chargeable Lifetime Transfer (CLT) and death of the deceased person.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 5:
Richard died on 11 July 2019, leaving an estate valued at £900,000. None of the transfer
made on his death were exempt from IHT. He had made the following transfers during his
lifetime:
Transfer
Gift to relevant property
trust(tax paid by trustees)
Gift to daughter
Date
£
3 May 2011
113,000
1 July 2012
1 August 2012
185,000
250,000
447,000
Gift to son
Gift to relevant property
trust(tax paid by Richard)
10 November 2013
Required:
a) Calculate the tax payable as a result of Richard's death. (Assume that there is no unused
nil-rate band to be transferred from a previously deceased spouse or civil partner
c) Briefly explain the procedures currently in use on IHT administration regarding the
Chargeable Lifetime Transfer (CLT) and death of the deceased person.
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