Introduction

Inheritance tax can severely impact what can be passed on to future generations. But with the right planning the effect of IHT can be minimised. It is therefore essential for adviser when considering wealth transfer to understand what IHT may be payable in the event of death.

This module should take around 60 minutes to complete. Once you have completed all the sections there is a short self-assessment quiz to check what you have learned and a CPD certificate for up to 60 minutes can be claimed.

Outcomes

On completion of this module you should be able to:

  1. Determine the value of an estate on death
  2. Calculate the amount of available IHT nil rate band on death
  3. Explain what reliefs may be available

Post learning assessment

Question 1

Which of the following is NOT included in a UK domiciled individual’s estate?

  1. A holiday home in Spain
  2. A gift made into a discretionary trust within 6 years of death
  3. The proceeds of a life assurance policy not held in trust
  4. A gift between spouse

Question 2

Harry died in May 2007 with an estate of £2.5M. The IHT nil rate band for 2007/08 was £300,000. In his will he left £75,000 to his son Gary, he also left £150,000 into a discretionary trust for his grandchildren. The balance of the estate passed to his widow Sally. On Sally’s death she has an estate of £3M. How much nil rate band will Sally’s executors be able to claim?

  1. Just the standard nil rate band
  2. 2 x the standard nil rate band
  3. 1.25 x the standard nil rate band
  4. No nil rate band is available

Question 3

Which of the following would prevent the residence nil rate band from being claimed?

  1. Having an estate valued at £2 million
  2. The family home passes into a discretionary trust
  3. The family home was sold when the deceased entered residential care and other assets to an equivalent amount passed to the children on death
  4. The family home passes into a bare trust for the deceased’s minor child

Question 4

Which of the following will qualify for 100% Business Property Relief (BPR)?

  1. An interest in a partnership
  2. Buy to let properties held in a private company
  3. Business premises which the deceased owned personally but which was used by their own company
  4. AIM listed shares held for less than 2 years

Check your answers

Claim your certificate