The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Where farmland has been transferred as a lifetime gift there can be clawback of the APR where the donor dies within seven years of the gift. When calculating the inheritance tax charge on death, all lifetime gifts within the last seven years must be brought into account.
When an individual has made transfers within seven years of his death:
an additional charge will be levied at the time of his death if the transfer was a chargeable lifetime transfer (CLT).
If the amount of the transfer was reduced by APR, the additional charge to tax is levied on the reduced amount.
inheritance tax will be charged for the first time if the transfer during his lifetime was a potentially exempt transfer (PET).
The amount of the transfer is reduced by APR before the charge is levied, but only if the transfer qualified for APR at the time of the PET.
See the Agricultural property relief (APR) guidance note.
However, in both cases, the charge to inheritance tax will be levied on the transfers without the benefit of APR if certain conditions are not met.
APR will reduce the value of a transfer made within seven years of death as long as:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
Companies 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’ includes:•qualifying cash donations to
Where a donor has made a gift of property and continues to use or benefit (or may benefit) from that property in some way, he may have made a gift with reservation of benefit for the purposes of inheritance tax (IHT).However, this will not be the case where:•a donor makes a gift of cash and the
Current year relief and carry back lossesCurrent year relief for trading lossesTrading losses can be offset against total profits of the same period. Total profits covers, for example, chargeable gains or non-exempt dividends.The maximum claim for relief is the lower of the available loss or the