What triggers IHT?
Transfers on death or certain lifetime gifts.
What is the nil-rate band?
Amount chargeable at 0% IHT.
What is the residence nil-rate band?
Additional allowance for passing home to direct descendants.
What is a PET?
Potentially exempt transfer.
When does a PET become exempt?
Survive 7 years.
What is a CLT?
Chargeable lifetime transfer to certain trusts.
What is taper relief?
Reduces IHT on PETs after 3 years.
What is the IHT rate on death?
40%.
What is lifetime IHT rate?
20%.
If a CLT is above the nil rate band, charged at 20% depending on who pays this.
Are transfers between UK spouses exempt?
Yes.
Are transfers to charities exempt?
Yes.
Small gift exemption?
£250 per recipient.
Marriage gift limits?
Parent £5,000, grandparent £2,500, others £1,000.
Normal expenditure out of income is exempt if?
Regular, from income, leaves enough to live on.
What is deemed domicile?
Treated as UK-domiciled for tax purposes.
What values form an estate?
All worldwide assets (unless non-dom).
What reduces estate value?
Debts and funeral expenses.
How long can IHT be paid in instalments?
Up to 10 years on some assets.
What is quick succession relief?
Prevents double IHT within 5 years.
What assets qualify for business relief?
Certain shares/business assets.
What is agricultural relief?
Reduces IHT on qualifying farmland.
Are PETs reported immediately?
Only if donor dies within 7 years.
Exempt transfers
Not considered for IHT
PET
Exempt if survived by 7 years
