Grossing up calculations

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Grossing up calculations

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

This guidance note should be read in conjunction with the illustrative Grossing up calculations examples.

The partial exemption problem

Gifts in a Will may be broadly divided into:

  1. specific gifts, which are gifts of a particular item or an amount of money, and

  2. residuary gifts, which are comprised of what is left after payment of all debts, expenses, specific gifts and taxes

Specific gifts may be chargeable or exempt. The tax on chargeable specific gifts is paid out of residue unless:

  1. the property which forms the basis of the gift is not in the UK, or

  2. there is a contrary direction in the Will

Residuary gifts may also be chargeable or exempt. An exempt residuary gift does not bear any of the tax attributable to residue but it does bear part or all of the tax attributable to chargeable specific gifts.

See the Incidence of tax on specific gifts and Incidence of tax on residuary gifts guidance notes.

In order to calculate residue one needs

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Taxation of loan relationships

Taxation of loan relationshipsThe vast majority of companies will have loan relationships and so will need to consider how they are taxed under the loan relationship rules. There are also specific provisions dealing with relevant non-lending relationships and other deemed loan relationships.

14 Jul 2020 13:48 | Produced by Tolley Read more Read more

Qualifying charitable donations

Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’

14 Jul 2020 13:03 | Produced by Tolley Read more Read more

VAT registration ― artificial separation of business activities (disaggregation)

VAT registration ― artificial separation of business activities (disaggregation)This guidance note should be read in conjunction with the VAT registration ― compulsory guidance note and is relevant to persons established or resident in the UK. Persons that are not established or resident in the UK

14 Jul 2020 13:57 | Produced by Tolley Read more Read more