Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance | Study Guide & Exam
Review
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
,Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
What are the 4 exemptions for IHT that go in stage 1 of the proforma for lifetime gifts?
1. Small gifts exemption (any transfers that do not exceed £250 in one tax year --> CANNOT
exempt part of a larger gift).
2. Marriage/civil partnership exemption (relief given for gifts made to a party of a
marriage/CP. £5,000 limit if made by parent, £2,500 if grandparent, ancestor or party to the
marriage, £1,000 if anyone else).
3. Normal expenditure out of income (regular payment, made out of donor's income, does
not impact donor's standard of living e.g. paying school fees).
4. Annual exempt amount (first £3,000 each year is always exempt, can also carry forward
any unused AE from prior year so can get a max. of £6,000 AE).
Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
,Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
What are the 3 general exemptions from IHT? (made in either life or on death)
1. Transfers to the donor's spouse or civil partner.
2. Transfers to charity.
3. Transfers to qualifying political parties (need two MPs or one MP and at least 150,000
votes).
What is fall in value relief? (and what does it not apply to)
- the transferee still owns the asset received but the market value on death is below the MV
at the date of the transfer.
- the transferee sold the asset before the death of the donor but the MV at the sale was
below the MV at the date of the transfer.
The relief is calculated as the difference between MV at transfer and the MV at death, is first
thing to be deducted from stage 3 of comp.
--> doesn't apply to chattels with <50 year life, plant or machinery.
Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
, Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
What are the dates for which a transferor must provide HMRC with details for transfers
chargeable to IHT?
CLT - 12 months after the end of the month in which the transfer occurred.
PET - 12 months after the end of the month in which death occurred.
When does interest run from for IHT?
- for lifetime transfers interest runs from due date to day before IHT is paid.
- for death estate, interest runs from 6 months after end of month of death to day before IHT
is apid.
Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance | Study Guide & Exam
Review
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
Tax Compliance _ Study Guide & Exam Review.pdf
,Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
What are the 4 exemptions for IHT that go in stage 1 of the proforma for lifetime gifts?
1. Small gifts exemption (any transfers that do not exceed £250 in one tax year --> CANNOT
exempt part of a larger gift).
2. Marriage/civil partnership exemption (relief given for gifts made to a party of a
marriage/CP. £5,000 limit if made by parent, £2,500 if grandparent, ancestor or party to the
marriage, £1,000 if anyone else).
3. Normal expenditure out of income (regular payment, made out of donor's income, does
not impact donor's standard of living e.g. paying school fees).
4. Annual exempt amount (first £3,000 each year is always exempt, can also carry forward
any unused AE from prior year so can get a max. of £6,000 AE).
Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
,Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
What are the 3 general exemptions from IHT? (made in either life or on death)
1. Transfers to the donor's spouse or civil partner.
2. Transfers to charity.
3. Transfers to qualifying political parties (need two MPs or one MP and at least 150,000
votes).
What is fall in value relief? (and what does it not apply to)
- the transferee still owns the asset received but the market value on death is below the MV
at the date of the transfer.
- the transferee sold the asset before the death of the donor but the MV at the sale was
below the MV at the date of the transfer.
The relief is calculated as the difference between MV at transfer and the MV at death, is first
thing to be deducted from stage 3 of comp.
--> doesn't apply to chattels with <50 year life, plant or machinery.
Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
, Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
What are the dates for which a transferor must provide HMRC with details for transfers
chargeable to IHT?
CLT - 12 months after the end of the month in which the transfer occurred.
PET - 12 months after the end of the month in which death occurred.
When does interest run from for IHT?
- for lifetime transfers interest runs from due date to day before IHT is paid.
- for death estate, interest runs from 6 months after end of month of death to day before IHT
is apid.
Tax Compliance.pdf Tax Compliance.pdf Tax Compliance.pdf
