Today, we had our last Question Based Day Course before the Advanced Tax exam on Tuesday and worked through 6 questions (140 marks) covering key areas which are expected to feature in the exam. My students did extremely well despite the fact they were cream crackered (shattered) by the end of the day. Still very productive use of the time left.
One aspect I felt many people neglected was the IHT death estate. You need to put all assets into the death estate and deduct any agricultural property relief on farms (100%) and business property relief (100%) on unquoted shares.
Usually, part of the nil rate band is consumed by lifetime transfers so not 100% is available on the death estate.
If 10% of the baseline amount (add back any RNRB and charitable legacy) is left to a charity, then tax the death estate at 36% instead of 40%.
Once you have computed the tax, deduct quick succession relief if any assets were taxed twice in the last 5 years based on the formula (original tax x original asset/ original death estate x QSR%) . Just remember 2 deaths in 1 year is 100% and then reduce by 20% for each successive year.
Finally, if any overseas assets have suffered tax, deduct double tax relief based on the lower of UK tax and overseas tax (given).
This tax is payable by the executors or personal representatives 6 months after the month of death. Remember that for instalment property (buildings and businesses that do not get BPR) tax can be paid in 10 annual instalments.
The best way to prepare for the exam is to learn my Condensed Notes and then practice exam questions.
If you are planning on doing Taxation or Advanced Tax in September 2022, I recommend you purchase Tax Condensed or Advanced Tax Condensed which will allow you to learn the technical rules If you then practice the key questions I recommend, you too will be ready for anything the examiner throws at you.
 These books will really make the difference. You can purchase them using the links below:
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