Value added Tax (VAT)

Standard rate 20%

Registration limit 85,000

Deregistration limit 83,000

Inheritance tax: tax rates

1 - 325,000 Nil

Excess Lifetime rate 20%

Death rate 40%

Residential nil rate band - 150,000 Nil

Inheritance tax: taper relief

%

Years before death:

Reduction

Over 3 but less than 4 years 20

Over 4 but less than 5 years 40

Over 5 but less than 6 years 60

Over 6 years less than 7 years 80

On 14 November 2019, Joyce made a cash gift to a trust of 800,000 (after deducting all available exemptions). Joyce paid the inheritance tax arising from this gift. Joyce has not made any other lifetime gifts. 24. What amount of lifetime inheritance tax would have been payable in respect of Joyce's gift to the trust? (3 marks) During the tax year 2019/20 Mildred made four cash gifts to her grandchildren: 25. For each of the gifts listed below, choose the box to indicate whether the gift will be exempt or not from inheritance tax under the small gifts exemption. 400 to Alfred EXEMPT 140 to Minnie EXEMPT A further 280 to Minnie EXEMPT 175 to Winnifred EXEMPT NOT EXEMPT NOT EXEMPT NOT EXEMPT NOT EXEMPT For the quarter ended 31 March 2020, Pam had standard-rated sales of 49,750 and standard-rated expenses of 22,750. Both figures are exclusive of value added tax (VAT). Pam uses the flat rate scheme to calculate the amount of VAT payable, with the relevant scheme percentage for her trade being 12%. The percentage reduction for the first year of VAT registration is not available