The Taxation of Gifts and Inheritances, Finance Act 2019
- Part 1
- Chapter 2 Definitions, Scope and Territoriality
- Chapter 4 Inheritance Tax
- Chapter 5 Valuation Date
- Chapter 6 Value of Property for CAT
- 6.5 Share Valuation
- 6.5.1 Quoted shares
- 6.5.2 Unquoted shares and securities
- 6.5.3 Factors relevant to the valuation of unquoted shares
- 6.5.4 Methods of valuation
- 6.5.5 Size of shareholding and minority discounts
- 6.5.6 Shares with Future Entitlement and discounts
- 6.5.7 Private Family controlled companies
- 6.5.8 Valuation of a private controlled company
- 6.5.9 Compare the valuation for CAT with the valuation used for CGT/stamp duty
- Chapter 7 Exemptions
- 7.5 Relief in Respect of Certain Policies of Insurance Relating to Tax Payable on Gifts
- 7.6 Exemption of Certain Policies of Insurance
- 7.7 Exemption of Specified Collective Investment Undertakings
- 7.8 Provisions Relating to Charities etc
- 7.9 Exemption of Heritage Property
- 7.10 Heritage Property of Companies
- 7.11 Exemption of Certain Inheritances Taken by a Parent
- 7.12 Payments Relating to Retirement etc
- 7.13 Exemption of Certain Securities
- 7.14 Exemption of Certain Receipts
- Chapter 8 Reliefs
- 8.3 Business Relief
- 8.3.1 Relevant business property
- 8.3.2 Excluded businesses
- 8.3.3 Holding companies and groups
- 8.3.4 Minimum period of ownership
- 8.3.5 Replacement property
- 8.3.6 Excepted and excluded assets
- 8.3.7 Assessing the value
- 8.3.8 Business relief review
- 8.3.9 Clawback of relief
- 8.3.10 Interaction with agricultural relief
- 8.3.11 Comparison with agricultural relief
- Chapter 9 Discretionary Trust Tax and Related Issues
- 9.3 Initial Levy on Discretionary Trusts
- 9.3.1 Charge to initial levy
- 9.3.2 Date of deemed inheritance
- 9.3.3 Territoriality
- 9.3.4 Valuation date for initial levy
- 9.3.5 Taxable value
- 9.3.6 Interests in expectancy
- 9.3.7 Avoidance of double charge
- 9.3.8 Liability to pay the initial discretionary trust tax and file a return
- 9.3.9 Exclusion of certain CATCA 2003 provisions
- 9.3.10 Exemptions
- 9.3.11 Partial refund of initial discretionary trust tax
- 9.4 Annual Levy on Discretionary Trusts
- 9.4.1 Introduction
- 9.4.2 Definitions
- 9.4.3 Charge to annual levy
- 9.4.4 Territoriality
- 9.4.5 Anti-avoidance
- 9.4.6 Interests in expectancy
- 9.4.7 Interaction of initial and annual discretionary trust levies
- 9.4.8 Valuation date for annual levy
- 9.4.9 Taxable value
- 9.4.10 Liability to pay the annual discretionary trust tax and file a return
- 9.4.11 Exclusion of certain CATCA 2003 provisions
- 9.4.12 Exemptions
- 9.4.13 Rate of annual levy
- 9.4.14 Values agreed and retained for three years
- Chapter 10 Settlements and Limited Interests
- 10.1 Introduction
- 10.2 Discretionary Trust
- 10.2.1 CAT consequences on the establishment of a discretionary trust
- 10.2.2 Appointments from a discretionary trust
- 10.2.3 Gifts and inheritances taken from a discretionary trust – disposition prior to 1 December 1999
- 10.2.4 Gifts and inheritances taken from a discretionary trust – disposition on or after 1 December 1999
- 10.2.5 Appointment of capital or income
- 10.2.6 Appointment of a limited interest
- 10.2.7 Appointment of free use of trust assets
- 10.2.8 Reliefs available on appointment of trust assets
- 10.2.9 Appointment of trust assets free of tax
- 10.3 Settlement
- 10.3.1 Dealings with future interests
- 10.3.2 Release of limited interests
- 10.3.3 Settlement of reversionary interest
- 10.3.4 Enlargement of interests
- 10.3.5 Other taxes on transactions of settled property
- 10.3.6 Return by trustees on death of person with a limited interest
- 10.3.7 Liability to CAT on certain sales and mortgages
- Chapter 11 Issues Relating to Foreign Assets and Double Taxation
- 11.1 Introduction
- 11.2 United Kingdom
- 11.2.1 Introduction
- 11.2.2 Territoriality
- 11.2.3 Domicile in the UK
- 11.2.4 The charge to IHT
- 11.2.5 Calculation of IHT
- 11.2.6 Exemptions
- 11.2.7 Reliefs from IHT
- 11.2.8 Excluded property
- 11.2.9 Deeds of variation and disclaimers
- 11.2.10 UK anti-avoidance
- 11.2.11 Payment of tax
- 11.2.12 Practical example
- 11.3 France
- 11.3.1 Introduction
- 11.3.2 Inheritance law in France
- 11.3.3 Territoriality
- 11.3.4 Inheritance tax allowance bands
- 11.3.5 Calculation of French inheritance tax
- 11.3.6 Gift tax allowance bands
- 11.3.7 Calculation of gift tax
- 11.3.8 Reliefs
- 11.3.9 Taxation of trusts
- 11.3.10 Administration
- 11.3.11 Practical example
- Chapter 12 Probate and Administering a Deceased’s Estate
- 12.4 Grant of Probate or Letters of Administration
- 12.4.1 Grant of probate
- 12.4.2 Grant of letters of administration With will annexed
- 12.4.3 Grant of letters of administration
- 12.4.4 Personal application
- 12.4.5 Probate office and district probate registries
- 12.4.6 Extraction of a grant of probate
- 12.4.7 Extraction of a grant of letters of administration
- 12.5 Inland Revenue Affidavit
- 12.5.1 Completing the Inland Revenue Affidavit
- 12.5.2 Return by trustees on death of person with a limited interest
- 12.5.3 Procedures for submission of Inland Revenue Affidavit
- 12.5.4 Non-residents
- 12.5.5 Corrective affidavit
- 12.5.6 Death of personal representative during the administration of the estate
- Part 2
- Chapter 14 Returns, Pay & File, ROS, Taxable Value and Assessments
- 14.1 Introduction
- 14.2 Accountability for CAT
- 14.3 Self-assessment
- 14.3.1 Returns
- 14.3.2 Pay and file date for mainstream CAT
- 14.3.3 Obligation by a beneficiary to file a return
- 14.3.4 Obligation for a beneficiary to file a return where the benefit is exempt from CAT
- 14.3.5 Obligation for a disponer to file a return
- 14.3.6 Obligation to file a return on disposition to a discretionary trust
- 14.3.7 Expression of doubt
- 14.3.8 Signing of returns
- Chapter 15 Payment and Recovery of Tax, Interest, Surcharges and Penalties
- 15.1 Introduction
- 15.2 Payment of Tax and Interest
- 15.2.1 Tax
- 15.2.2 Interest
- 15.2.3 Set-off of gift tax
- 15.2.4 Payment of tax by instalments
- 15.2.5 Payment of CAT by non-statutory instalments, postponement and remission
- 15.2.6 Payment of inheritance tax by transfer of securities
- 15.2.7 Payment of inheritance tax using buy-back of shares
- 15.2.8 Payment of CAT by donation of heritage items
- 15.2.9 Payment by notice of attachment
- 15.4 Recovery of Gift and Inheritance Taxes Inter-Country
- 15.5 Overpayment of Tax
- 15.6 Penalties
- 15.6.1 Failure to submit returns
- 15.6.2 Failure to allow inspection of property
- 15.6.3 Deliberately and carelessly
- 15.6.4 Assisting or inducing
- 15.6.5 Criminal actions
- 15.6.6 Application of TCA 1997 provisions in connection with penalties
- 15.6.7 Revenue offences
- 15.6.8 Court proceedings to order the submission of a return
- 15.6.9 Publication of names of tax defaulters
- Chapter 16 Revenue Powers Relating to CAT and Revenue Audits
- 16.3 Other Revenue Powers
- 16.3.1 Power to require production of accounts and books
- 16.3.2 Production of books and records – Application to High Court
- 16.3.3 Power to obtain from certain persons particulars of transactions and documents concerning tax liability of taxpayer
- 16.3.4 Information from third parties – Application to High Court
- 16.3.5 Power of inspection: life policies
- 16.3.6 Information to be furnished by financial institutions
- 16.3.7 Power of attachment
- Chapter 17 Governing the Family Business – Rules of the Road
- 17.1 Introduction
- 17.2 What is the Purpose of a Family Governance Structure
- 17.3 Degrees of Change Facing the Family Business
- 17.4 Establishing a Family Business Structure
- 17.5 The Frameworks of Family Business Governance
- 17.6 The Family Meeting
- Part 3 Practical Transactions
- Transaction 1 Lifetime Transfer of a Family Company
- Transaction 3 Estate
- Transaction 4 Estate Inequality Between Children & Disclaimers
- Transaction 5 Estate of Widow
- 1 Background
- 2 Issues
- 2.1 Information gathering
- 2.2 Life-time transfers
- 2.3 Use the annual small gift exemption
- 2.4 Use of business property relief in relation to gift to Simon
- 2.5 Trust for Simon’s youngest child
- 2.6 Inheritance conditional on investment in agricultural property
- 2.7 Dwelling-house relief
- 2.8 Trust for the youngest grandchild
- 2.9 Bequests to other grandchildren
- 2.10 Tax free benefit
- 2.11 Legal advice, making her will and choosing executors/trustees
- 2.12 And finally.