Inheritance tax and capital gains tax (for P6 (UK)) - part 3: self-test

Test your understanding

(1). State whether the following statements are true or false for both IHT and CGT.

A Inter-spouse transfers of assets are exempt.
B There may be no tax charge where an individual makes a gift of a painting worth £200 to another individual.

(2). Opal has owned the whole of the ordinary share capital of Puma Ltd, a manufacturing company for nine years. On 1 May 2017 she made a gift of 4,000 ordinary shares in the company. The values of the assets owned by Puma Ltd are set out below.

Factory and warehouse1,100,000 
Items of machinery30,000 
Receivables and inventory10,000 

Explain how the assets owned by Puma Ltd will affect the business property relief and gift relief available in respect of the gift and identify any additional information required in relation to the assets.