Personal Tax & IHT - help please
heatherh
Registered, Tutor Posts: 6
Hi
Has anyone looked at AAT Sample Assessment 2 question 13?
Q13 The answer is £800 but I'd have thought it was £4000 i.e. 40% death tax, but it has been calculated as 20% life time rate of the £4,000 ??
Am I right or wrong please??
Thank you
Has anyone looked at AAT Sample Assessment 2 question 13?
Q13 The answer is £800 but I'd have thought it was £4000 i.e. 40% death tax, but it has been calculated as 20% life time rate of the £4,000 ??
Am I right or wrong please??
Thank you
0
Comments
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Hello
This is because of taper relief. Taper relief is applied to lifetime transfers if the lifetime transfer was made between 3 and 7 years before death (which it was in this case). So the longer someone lives after making a lifetime transfer the greater the taper relief.
If you take a look in any of the AAT book publishers it should show you the percentages.
I hope that helps point you in the right direction
Rebecca0 -
Of course...thank you there was 80% taper relief!0
