req 1

RED PERRY DEATH ESTATE

gross chargable estate 800000
RNB available : -439000

Taxable estate 361000

death estate IHT percetage 40%

IHT payable 144400

req 2
If he left his estate to his son there will be another allowance RNB of main residence which 175000 , as it can be ava

(b) BLU REDDY

TAX calculation of CLT
no of share price/share
value of share hold before making gift 300000 £4
less value of share hold after making gift 100000 £2

vlue of gift to trust

chargable CLT at time of gift £1,000,000

RNB 325000
0
-325000
Taxable amount £675,000
Percentage of IHT payable by reddy 25%
IHT paid by reddy £168,750

grossing up :
chargeble CLT amount 1000000
IHT paid by Reddy £168,750
gross chargable CLT £1,168,750
 Additional IHT on CLT (15 jan 2023)

gross CLT £1,168,750

RNB 325000
0
-325000
CHARGABLE AMOUNT £843,750
Additional CLT %age 40%
£337,500
less Taper relief ( death between 3rd and 4th) -£135,000
total IHT tax £202,500
less already paid on 15 jan 2023 -£168,750
IHT payable £33,750

QUE 216 JACK AND TOM

(A)
Jack qualifies for investor relief because he meet all those conditions;
1 trading company
2 un quoted company
3 not bee employed there
4 subscription must after 17th march 2016
5 must hold shares for 3 year after 6 april 2016
6 so after all above conditions it also qualifies for BADR

Capital gain tax on disposal of shares ;

D.P 151107
less cost 13119
chargable gain 137988
less current year capital loss 1572
less Aunnal exemption 12300
124116
Qualifying gain %age 10%
Capital gain tax 12411.6
 (B) 1.
1. if tax paid by trustees

value transferred 450000

less annual exemption
22/23 3000
21/22 0 3000
less Unused NRB 325000
Less any CGT in lst 7 y 0 325000
taxable CLT amount 122000
%age of trustee tax payable 20%
IHT Payable 24400

2. if tax paid by TOM himself

taxable amount 122000

%age of trustee tax payable 25%
IHT Payable 30500

3. Gross chargable transfer

chargable transfer 447000

IHT paid by tom 30500
477500

(B) 2.

1 if gift was made to trust rather than daughter then it would be CLT rather then PET.
2 if gift was made to trust then no IHT would be paid as the value is lower of NRB ( in 20 dec
3 if gift was made to trust then a part of NRB woud be consumed in 20 dec2021 and hence h

que; 218 ::
DEATH ESTATE

PET 253000 Property investment

less annual exemption assurance policy proce
 21/22 3000
20/21 3000 6000 less RNB
247000 PET ( OCT 22)
less RNB 325000 Taxable amount
CLT (JUNE 2015) -140000 185000 %age of IHT on death e
taxable amount 62000
%age of IHT 40%
24800
taper relief less than 3 years gap 0
IHT payable on PET 24800

que 219 :
14-May-21 2-Aug-21
transferred value 420000 transferred amount
less annual exemption; less annual exemption
21/22 3000 less RNB
20/21 3000 6000 taxable amount
PET 414000 %age on CLT
less RNB 325000 IHT payable
CLT (2015) 29000 296000
Taxable amount 118000
IHT %age on PET 40%
IHT payable 47200

que 220
3-Dec-17 CLT :

amount transferred 395000

IHT paid by MARCUS on CLT 96250 less
gross chargable amount 491250
less RNB 325000
less CLT (JAN 2 315000 10000
Taxable amount 481250 less
%age on CLT 40%
192500
taper relief ( b/t 5 and 6 yr) 115500 -115500
CLT already paid by Marcus -96250
IHT payable 0

Que
 RNB calculations

Red own RNB available

325000
PET (jan 2020) -211000
unused RNB of Red 114000

wife 100% RNB transf 325000

total available RNB 439000

175000 , as it can be availed when the estate is gone down to decendents (childerns).

£1,200,000
-£200,000

£1,000,000
 rather then PET.
ower of NRB ( in 20 dec 2021)
20 dec2021 and hence higher IHT tax will be there on second gift.

DEATH ESTATE

Property investment 970000

assurance policy proceeds 225000
 1195000
325000
PET ( OCT 22) -247000 78000
Taxable amount 1117000
%age of IHT on death estate 40%
446800

22-Jan-23 death estate

transferred amount 260000 estate value

annual exemption 0 RNB (CONSUMED)
(consumed ) 0 chargable estate
taxable amount 260000 %age on death estate
%age on CLT 40%
IHT payable 104000

1-Jan-18 PET: working 1 :

value of shares before transferred
value transferred (W1) 570000 less value of shares after transferred
RNB consumed 0 transferred value
taxable amount 570000
%age on PET 40%
228000
Taper relief b/t 4 and 5 yr 91200
136800
 (b) if transferred to nephew directly rather than brother it would be benifia

870000
0
870000
40%
348000

hares before transferred 1200000

hares after transferred 630000
570000
an brother it would be benifial as skip of generation would result in one time IHT on gifts.