188体育

Death in February 2002. The deceased is the transferor in the lifetime transfer example (IHTM30312).

The death estate is wholly chargeable and consists of a business dealing in property (拢300,000), a house (拢150,000) and quoted investments (拢140,000), a total of 拢590,000.

The deceased also made lifetime gifts totalling 拢400,000, giving a total chargeable transfer of 拢990,000.

The Inheritance Tax on 拢990,000 is 拢299,200, of which 拢63,200 is due on the lifetime gifts.

The tax on the death estate is 拢236,000.

• Proportion of tax on business (拢300,000)

(300,000 梅 590,000) x 拢236,000 = 拢120,000

This 拢120,000 is payable by instalments and as it is a business, although it does not qualify for Business Relief (IHTM25131) because of IHTA84/S105 (3), the instalments are interest free (IHTM30363).

• Proportion of tax on value of house (拢150,000)

(150,000 梅 590,000) x 拢236,000 = 拢60,000

This 拢60,000 is also payable by instalments. The instalments are not interest free as the house is neither agricultural property (IHTM24030) nor part of a business (IHTM25051).

• Proportion of tax on value of quoted investments (拢140,000)

(140,000 梅 590,000) x 拢236,000 = 拢56,000

This is payable in one sum.