(1). Healey died on 30 November 2013. His estate included 8,000 ordinary shares in Sprite Ltd with a market value of £90,000. Healey purchased the shares in June 2004 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 2014 Francis moved out of the house that she has lived in since she purchased it in May 2001 and moved into a rented flat. The house is currently occupied by a tenant on six-month tenancy.
Maude 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 July 2014, 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 |
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.