This subtopic contains introductory guides to the main taxes and tax concepts which are relevant for Private Client practitioners. Previously referred to as Quick Tax Guides, each guide is intended to be an introduction to the key aspects of a particular tax and its applications, as well as compliance aspects.
The most common incidence of IHT is on the deemed transfer of value that takes place on a person's death. IHT may also be payable on certain lifetime transactions (such as transfers into trust). For a long term resident individual (prior to 6 April 2025, a UK domiciled individual), IHT is payable on worldwide assets (with credit for tax paid overseas), whereas an individual who is not a long term resident (or a non-UK domiciled individual prior to 6 April 2025) will, in general and subject to exceptions, only pay tax on assets situated in the UK. The concept of long term residence is critical to the scope of IHT.
There are a variety of reliefs and exemptions from IHT, including business property relief, agricultural property relief, normal expenditure out of surplus income, quick succession...
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Taxation of trusts—sub-fundsA ‘sub-fund’ of a trust is said to exist when a specific asset (or specific assets) of the trust are held subject to separate and distinct trust provisions to those applicable to the other assets of the trust. A trust may have any number of sub-funds. Normally, the same
Qualifying interest in possession trusts—IHT treatmentTrust property, which is the subject of a qualifying interest in possession (QIIP), may become chargeable to inheritance tax (IHT) on the following occasions:•on the death of the beneficiary with the interest in possession (the life tenant)•on
Pro forma CGT calculation for an individualCalculation for an individual (or trust or estate)Sale proceedsxxxxxxLess: Costs of salexxxxxOriginal cost of assetxxxxxCost of improvementsxxxxxTotal costsxxxxxx_______Gain: before loss reliefxxxxxxLess: Losses brought forward (if any)/Current Year
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