3. John made the following lifetime gifts during the tax year 2019/20:

a) Gift of cash to his wife 400,000

b) Gift of 10,000 shares to his son on his marriage.

Before giving gift of shares, John owns 16,000 shares (80% holding) in Jam Ltd.

Holding	Market price per share
Up to 25%	20
26% to 40%	30
41% to 50%	35
51% to 75%	45
76% to 100%	50

(i) Explain the meaning of Taxable Person under Inheritance Tax. (100 words)

(ii) For the above scenario, you are required to calculate: Transfer of Value and Gross Chargeable Amount after considering the relevant exemptions for the lift time gift.

(iii) Assume that John dies on 20/12/2021, calculate the tax on death for the lifetime gift and specify who pays the tax and the due date for the payment of tax.

if the rate is

INHERITANCE TAX: Tax rates
Residence Nil Rate Band (RNRB) for 2019/20		150,000
Nil rate band for 2019/20		325,000
IHT for Lifetime gift after death		40%
- Death Estate rate		40%