(1). Healey died on 30 November 2021. His estate included 8,000 ordinary shares in Sprite Ltd with a market value of £90,000. Healey purchased the shares in June 2012 for £16,000.
Explain the maximum and minimum IHT and CGT liabilities that could arise in respect of these shares as a result of Healey’s death.
(2). On 1 February 2022 Francis moved out of the house that she had lived in since she purchased it in May 2009 and moved into a rented flat. The house is currently occupied by a tenant on a six-month tenancy.
Francis paid £340,000 for the house. It is currently worth £520,000.
Francis is considering either:
(i) giving the house to Maude, her niece, on 31March 2022, or
(ii) continuing to rent out the house and leaving it to Maude in her will.
Summarise the tax implications in the following table.
| CGT | IHT | ||
|---|---|---|---|
| Lifetime gift | |||
| Gift via will |