I4.161AA Cumulation, Tax Rate And Allocation Of Liability―Examples

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Commentary

IHT, trusts and estates

Examples of cumulation, tax rate and allocation of liability

Example 1—basic cumulation on death

T died on 1 January 2020 with an estate valued at £300,000. By his Will T left £80,000 free of tax to his daughter D, the residue of the estate to be divided equally between his wife W and his son S.

In addition to using his annual exemptions, T had made the following lifetime gifts:

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�� 1 February 2012 a chargeable transfer to a family discretionary trust, £100,000.

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�� 1 May 2014 a chargeable transfer

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D6.503 International movement of capital—reportable transactions and events

E4.507S Operation of the charge on securities with artificially enhanced market value

B5.123 BPS—negligible value claims

B5.812A Particular charitable bodies

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