IHTM04000 - How Inheritance Tax is charged: contents
Summary
History
Structure of the charge
Transfers on death
Lifetime transfers
Settled property
Heritage property
Woodlands
Property excluded from charge
Legal background
Summary
Summary |
History
History |
Structure of the charge
Main charging provisions |
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How a disposition becomes a chargeable transfer - flowchart |
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What is a disposition? |
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What is a transfer of value? |
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What is a deemed transfer of value? |
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What is an exempt transfer? |
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What is a chargeable transfer? |
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What is the value transferred? |
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What makes up a person's estate? |
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What is property? |
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What is meant by beneficially entitled? |
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How the meaning of estate is extended |
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How the meaning of estate is restricted |
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What is a general power? |
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What is general power property? |
Transfers on death
The charging provisions |
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Deemed transfer on death |
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What makes up the estate on death? |
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What is the value transferred on death? |
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Valuing property together |
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Changes in value by reason of death |
Lifetime transfers
The charging provisions |
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What is meant by a person? |
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What is meant by an individual? |
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The loss to the transferor's estate |
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Loss to estate greater than the value of property given |
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Loss to estate less than the value of property given |
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What is a potentially exempt transfer? |
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When is a gift made to another individual or specified trust? |
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When does property become comprised in the estate of an individual? |
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When is the value of another individual's estate increased? |
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Transfers that cannot be potentially exempt transfers |
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Woodlands subject to a deferred Estate Duty charge |
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Deemed transfers that are potentially exempt transfers |
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Deemed potentially exempt transfers |
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Purchase of a policy linked with an annuity |
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What is the value transferred by a potentially exempt transfer? |
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What is an immediately chargeable transfer? |
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Transfer of value by a close company |
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Alteration in share capital of a close company |
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What is the value transferred by an immediately chargeable transfer? |
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Introduction to Gifts with Reservation (GWR) |
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The charging provisions for GWRs |
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What is the value transferred by a GWR? |
Settled property
Introduction |
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The charging provisions for an interest in possession trust on death |
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The charging provisions for an interest in possession trust during lifetime |
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The charge where an interest in possession comes to an end |
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The charge where an interest is possession is disposed of |
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The charge where the value of settled property is reduced |
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Changes to settled property where IHT is not charged on an interest in possession trust |
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The charge where an interest in possession comes to end following a potentially exempt transfer |
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The charge where a both a close company and an interest in possession are involved |
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Transfer of value by a close company apportioned to trustees |
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Alteration in a close company's capital apportioned to trustees |
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The charge where a close company is entitled to an interest in possession |
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What is the value transferred when an interest in possession ceases? |
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What valuation issues when an interest is possession ceases |
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The charging provisions for discretionary trusts |
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Charges on property held in discretionary trusts |
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What is value of property held in discretionary trusts on which tax is charged? |
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Charges on special trusts |
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Charges on accumulation and maintenance trusts |
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Charges on employee and newspaper trusts |
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Charges on protective trusts |
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Charges on trusts for disabled persons |
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Charges on temporary charitable trusts |
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Maintenance funds for historic buildings |
Heritage property
Summary |
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When a charge to tax arises |
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Chargeable events under s.32 |
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Exceptions to the charge under s.32 |
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Chargeable events under s.32A |
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Exceptions to the charge under s.32A |
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Special situations |
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Double charges |
Woodlands
Summary |
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The deferred charge |
Property excluded from charge
Provisions which exclude the Inheritance Tax Act |
Dispositions that are not transfers of value
Introduction |
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Dispositions by close companies for the benefit of employees |
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Waiver or repayment of an amount of remuneration |
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Waiver of dividends |
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Grant of an agricultural tenancy |
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Changes in the distribution of the deceased's estate |
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Refund to trustees of Income Tax repayments received by settlor |
Dispositions not intended to confer bounty
Outline of s.10 |
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Application of the relief - flowchart |
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S.10 qualified or excluded |
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Definitions |
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First condition - gift not intended |
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Second condition - arm's length transaction |
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Application to settled property |
Dispositions for the maintenance of the transferor's family
Outline of s.11 |
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Definitions |
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Maintenance of a spouse or civil partner |
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Maintenance, etc., of children - flowchart |
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Maintenance, etc., of the transferor's children |
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Maintenance, etc., of other people's children |
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Care and maintenance of a dependent relative |
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Meaning of a dependent relative |
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Meaning on incapacity |
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Dispositions satisfying s.11 in part |
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Application to settled property |
Dispositions allowable for income tax or conferring retirement benefits
Outline of s.12 |
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Deductions allowable for income tax |
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Provision by employers for employee's retirement |
Excluded property
Introduction |
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Foreign 'unsettled' property |
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Savings of individuals domiciled in Channel Islands or Isle of Man |
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Holdings in Open End Investment Companies (OEICs) and Authorised Unit Trusts (AUT |
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Awards for gallantry |
Foreign settled property
Introduction |
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When the settlement was made |
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The settlor's domicile |
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Identifying the settled property |
Reversionary interests
Introduction |
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Purchased reversions |
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Reversion under own or spouse's/civil partner's settlement |
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Lease for life |
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Interest subject to an annuity |
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Reversions and foreign issues |
Government securities in foreign ownership
Introduction |
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Exclusion from the IHT charge |
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Type of security and ownership |
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Ordinary residence |
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Domicile |
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Close company with an interest in possession |
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Relevant property trusts and FOTRA gilts |
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Conversion to FOTRA gilts and the relevant property trust charge |
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Anti-avoidance provisions |
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Exclusion of interest on FOTRA gilts |
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Exclusion of repayment of Income Tax on FOTRA gilts |
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Reversionary interest in FOTRA gilts |
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FOTRA gilts in unadministered estates |
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FORTA gilts as partnership assets |
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List of FOTRA securities in issue at 5t h April 1998 |
Property of visiting forces
Introduction |
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Qualifying persons |
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Protection of domicile and residence |
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Designated countries |
Value left out of account
Introduction |
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Settled property to which the settlor's spouse, civil partner, widow(er) or surviving civil partner is entitled |
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Foreign currency bank accounts |
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Overseas pensions |
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Interest in possession as remuneration for services as trustee |
Estate Duty surviving spouse exemption
Introduction |
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Entitlement to relief - flowchart |
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Application on death |
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Application to lifetime events |
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Procedures where relief is due |
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Procedures where relief is not due |
Reverter to settlor
Introduction |
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Limitations to the relief |
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Statutory restrictions |
Woodlands
Summary |
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The conditions for relief |
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The death estate |
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The election |
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Beneficial entitlement under special types of interest |
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European Economic Area (EEA) - deaths on or after 22 April 2009 |
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European Economic Area (EEA) - retrospective application for deaths before 22 April 2009 |
Compensation for wrongs suffered during the World War II
Ex-gratia payment to Britons held as prisoners of war by the Japanese |
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Payments to slave or forced labourers or other victims of the German Nationalist Socialist (Nazi) regime |
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How to apply the relief |
Legal background
The concept of beneficial ownership (England, Wales & Northern Ireland) |
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Connected persons |
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The meaning of 'property' |
Estate Duty surviving spouse exemption
Introduction |
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Duty treated as paid in full on the first death |
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Restriction on exemption because of non-payment |
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Part of fund not dutiable on the first death |
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Treatment of income |
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Payment of duty in respect of any settled property since the date of the settlement |
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Meaning of 'competent to dispose' |
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Powers where the person is competent to dispose |
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Powers where the person is not competent to dispose |
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Powers exercisable by will of deed |
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Power to appropriate capital |
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Benefits under intestacy (England & Wales) |
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Benefits under intestacy and legal rights (Scotland) |
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Examples of competency to dispose |
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Meaning of 'parties to a marriage' |
