Keys to a better legacy

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Where a property which cost £150,000 in 1998 is sold now for £200,000 the CGT payable (ignoring annual exemption) would be:

  2. Emily died in June 2008 leaving all her estate to George. If George gives assets worth £700,000 to his adult children in March 2009, the amount of IHT payable immediately with respect to the transfers made by George is:

  3. Amy bought 50,000 ordinary shares in Barwest Bank in 2005 for £50,000, sold 5,000 of those shares on 6 March 2009 for £500 and bought 5,000 ordinary shares in Barwest Bank on 27 March 2009 for £450. The 2008–09 CGT profit/(loss) will be:

  4. In relation to shares to which Enterprise Investment Scheme relief is not attributable, income tax relief can be claimed for a capital loss on shares subscribed for in a company which meets the conditions in:

  5. Where a taxpayer dies within seven years of making a potentially exempt transfer taper relief is available under:

  6. The normal expenditure out of income exemption applies:

  7. The key case that it often quoted when discussing the normal expenditure out of income exemption is:

  8. In the case referred to in the above question Judge Lightman commented that: ‘All that is necessary is that on the totality of evidence the pattern of actual or intended regular payments shall have been established and that the item in question conforms with that pattern.’ He also said:

  9. Which of the following is NOT a condition that must be met for an individual to be able to backdate a negligible value claim:

  10. Mike owns shares in B Ltd which cost £50,000 in 2000. B Ltd was put into liquidation in March 2009. However, the shares were worthless in September 2007 when the company made a substantial loss on a major contract. On the basis that Mike made the claim on 10 March 2009, section 24(2) of the Taxation of Chargeable Gains Act 1992 provides that the earliest tax year for which a CGT loss can be claimed is: