Sample
591 others answered this question

Question 5b ii

(b) Maris:
– Is resident and domiciled in the UK and is widowed.
– Has three married children and five grandchildren under the age of 12.
– Wishes to make regular gifts to her family in order to reduce inheritance tax on her death.

Assets and income:
– In addition to pension income and savings income totalling around £60,000, Maris receives dividends from shareholdings in quoted companies of around £45,000 each year.
– The shareholdings in quoted companies are currently valued at £980,000.
– Maris wishes to gift some of the shares or the dividend income to her children and grandchildren on their birthdays each year.
– Maris already makes gifts each year to use her annual exemption for inheritance tax purposes.

Required:
(ii) Advise Maris of TWO relevant exemptions from inheritance tax which she will be able to use when making the birthday gifts, together with any conditions she will need to comply with in order to obtain them. (6 marks)

We use cookies to help make our website better. We'll assume you're OK with this if you continue. You can change your Cookie Settings any time.

Cookie SettingsAccept