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Family Investment Companies versus Discretionary Trusts for IHT planning

3 min read 27 Oct 22

Check your answers

1) What is the position with the IHT Nil Rate Band & Residence Nil Rate Band?

a. Both have been frozen up to and including 2023/24

b. Both have been frozen up to and including 2024/25

c. Both have been frozen up to and including 2025/26

d. Both have been frozen up to and including 2026/27

 

2) Shares in a Family Investment Company…

a. Always qualify for IHT Business Property Relief

b. Cannot be gifted outright

c. Do not qualify for IHT Business Property Relief

d. Must be quoted on an overseas stock market

 

3) A client who made a PET last year of £100,000 now wishes to make a gift into a discretionary trust but without incurring lifetime IHT. Assuming the annual exemption is otherwise used, what is the maximum gift that can be made?

a. £325,000

b. £225,000

c. £100,000

d. £425,000

 

4) An investment bond inside a company is taxed under…

a. The loan Relationship rules

b.  The Chargeable Event rules

c. Capital Gains Tax rules

d. Income Tax rules

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