Inheritance Tax

A lifetime transfer made by an individual to another individual is...

• Chargeable lifetime transfer

• Exempt transfer

• Potentially exempt transfer

A transfer made to your spouse is wholly exempt from inheritance tax

• only if it is made during your lifetime

• only if it is made on death

• if made either during your lifetime or on death

During their lifetime, an individual can give up to £250 per transferee per tax year to as many individuals as they wish and these transfers would be exempt from inheritance tax.

• True

• False

Arthur made a gift to his son in July 2025 of £50,000. He had made no previous transfers. What is the value of the transfer after deduction of any relevant exemptions?

• £44,000

• £47,000

• £NIL

• £50,000

In September 2025, Barbara made a gift of £20,000 to her son on the occasion of his marriage. The previous month she had made a gift to her nephew of £10,000. How much of the gift to her son will be exempt from IHT?

• £5,000

• £8,000

• £11,000

• £15,000

The same rates of inheritance tax apply irrespective of whether a transfer is made during someone's lifetime or on their death.

• True

• False

If an individual dies within 7 years of making a chargeable lifetime transfer, IHT is recalculated on the gross value of the transfer using the IHT bands and rates in force on the date of the transfer.

• True

• False

Kevin died in June 2008, leaving an estate valued at £202,800 entirely to his cousin. The nil rate band at Kevin's death was £312,000. Kevin had made no transfers during his lifetime.

Kevin's wife Daphne died in September 2025. What percentage of Kevin's nil rate band can be transferred to Daphne?

• 0%

• 100%

• 35%

• 65%

Kevin died in June 2008 when the nil rate band was £312,000. When he died Kevin had 35% unused nil rate band available to transfer to his wife Daphne.

Kevin's wife Daphne died in September 2025 The nil rate band available when calculating the IHT payable on Daphne’s death is:

• £325,000

• £434,200

• £109,200

• £438,750

The residence nil-rate band is available to relieve the value of a residential property in the death estate as long as the deceased person lived in the property at some point and the property is “closely inherited”.

If the property were left to a sister then this would be deemed as closely inherited.

• True

• False