Inheritance tax and capital gains tax for ATX-UK - part 4: self-test

Test your understanding

(1). Healey died on 30 November 2022. His estate included 8,000 ordinary shares in Sprite Ltd with a market value of £90,000. Healey purchased the shares in June 2013 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 2023 Francis moved out of the house that she had lived in since she purchased it in May 2010 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 31 March 2023, or

(ii) continuing to rent out the house and leaving it to Maude in her will.

Summarise the tax implications in the following table.

Lifetime gift   
Gift via will